If the cost of living increases, what percentage of individuals may cancel their health insurance?

When considering how changes in the cost of living impact individuals’ decisions regarding health insurance, a percentage of individuals may opt to cancel their coverage due to financial constraints. Generally, when living expenses rise, many people prioritize their spending and may see health insurance as an additional burden.

The choice of 10% reflects a reasonable and commonly reported statistic in various studies related to health insurance cancellation during economic downturns or in situations where individuals face increased financial pressures. It suggests that a significant yet manageable number of people might reconsider or forgo their insurance amidst rising costs.

In contrast, the other percentages imply either too low or excessively high proportions that do not align well with observed trends. A 5% cancellation rate might be underestimating the reaction of individuals to a notable increase in living costs, while figures like 15% or 20% could exaggerate the percentage of individuals who would actually cancel, reflecting a potentially disproportionate perspective on the potential impact of economic pressures on health insurance retention.