High rates of uninsured people can also hamper economic development, particularly in rural communities where the healthcare sector anchors many local economies. Healthcare jobs are steady and higher paying, helping boost local spending across retail, restaurants, groceries, and housing.

Yet, as rates of uninsured people increase, it is harder for rural hospitals, doctor’s offices, community clinics and pharmacies to keep their doors open. Rural health providers already operate on shoestring budgets, meaning every penny counts. This is because in rural areas, more people qualify for government-funded health insurance which pays less than private health insurers. Rural people are also more likely to be uninsured.

As that number grows, it means healthcare providers have fewer paying patients seeking their services, leading to more uncompensated care that must be absorbed by healthcare providers and taxpayers. 

The combination of fewer paid patient visits and rising unpaid bills is a recipe for financial insolvency. However, like any other business, hospitals, doctors, and clinics require revenue to pay their own rent, staff salaries, and electric bills. 

As goes the financial viability of rural health systems, so goes local economic development. Businesses seeking to expand operations do not want to invest in places where their employees will be unable to access local healthcare services.

Insured people who live in rural communities also are impacted. When local services evaporate, they must travel for care, meaning more time off work or school, higher travel expenses, and extra childcare costs. Private health insurance costs also increase because rural providers must charge more to help offset lost revenue from unpaid care.