Why are many people uninsured or underinsured?

• A. Skyrocketing healthcare costs
• B. Universal coverage under PPACA
• C. Excess government funding
• D. Low medical costs

Answer: (A)

Rising costs of care and health insurance drive affordability problems. When medical services, premiums, deductibles, and out-of-pocket costs keep climbing, many people can’t afford comprehensive coverage or end up with plans that leave them with large expenses anyway. This leads to uninsured individuals who can’t pay for coverage and, for those who do have insurance, plans with high cost-sharing that still strain household finances—what we call underinsurance. The Affordable Care Act (PPACA) aimed to expand access through subsidies and Medicaid expansion, but it did not achieve universal coverage, and costs remain a barrier for many. So, the main reason many people are uninsured or underinsured is that healthcare costs have been escalating faster than people’s ability to pay.