More Americans Are Losing Health Insurance—And Everyone Will Pay

The health insurance landscape in the United States is undergoing significant changes, with more people losing coverage and broader implications for everyone. Dr. Elaine Batchlor, CEO of MLK Community Hospital in Los Angeles, anticipates the closure of her safety net hospital if H.R. 1, the One Big Beautiful Bill Act, continues to impact the healthcare system.

Similar to King Drew Hospital that closed in 2007 due to safety and quality issues, MLK Community Hospital faces potential closure. The hospital's closure would leave a large low-income neighborhood without a nearby hospital for nearly a decade, leading to overcrowded emergency departments and increased costs for insured patients.

H.R. 1 includes work requirements, more frequent income confirmations, and reduced state funding, causing MLK Community Hospital to lose $80-$100 million annually. Analysts predict that over 300 rural hospitals could close due to H.R. 1. Dr. Batchlor emphasizes that the rise in uninsured people affects everyone, as it increases financial burdens on hospitals, forcing them to cut services or close.

Higher insurance costs for employers and patients are expected as hospitals charge more to cover non-reimbursed care. The U.S. faces its most serious health insurance crisis since the Affordable Care Act in 2010, with the Congressional Budget Office projecting that 16 million more people will be uninsured by 2034. Experts warn that the insurance crisis threatens the finances and care of all Americans, leading to longer wait times, fewer services, and higher costs.

Safety net hospitals, which care for uninsured or low-income patients, are particularly vulnerable and may face financial distress, leading to closures and the need for patients to seek care elsewhere.