Will Insurance Rates Be Impacted By Government Shutdown?

With the government shutdown keeping many federal and government workers at home and in dire straits, what more could be affected by the shutdown. When congress shut down the government, they put many non-essential federal workers out of a job and out of wages. This put a lot of people in fear that the government shutdown would start a catastrophic snowball and affect every industry in the nation with one fail swoop! Will what happened to government workers affect the insurance companies? Fortunately, the government shutdown will not have an adverse effect on the insurance industry. Since insurance is regulated by each state and not by Washington, people should not worry.

While their is likely no direct impact, there is potential for a residual impact to companies, as they may be impacted by the shutdown if the government employees that are insured are unable to pay their insurance bill due to a lack of income. This could become a serious problem if the number of unpaid government employees continues to increase. Another factor that may also affect the insurance industry is the government’s willingness to reach a resolution to the debt limit. This could render the government unable to pay its bills. Still, all across the board, the insurance industry continues to operate under normal conditions amidst the chaos of the government shutdown. National relief agencies such as FEMA are still in operation as well as the National Flood Insurance Program, which has been helping many Colorado residents weather through the floods.

The government shutdown right now is only affecting people in the government but it is safe to say a prolonged government shutdown would have far worse implications. Even more-so if the debt limit is not raised. The longer the government stays shutdown, the more workers they will have to furlough which could mean more services being interrupted.

As for right now the government workers that are employed by these companies will not likely be furloughed:

The Federal Flood Insurance Program will continue providing relief efforts to people who are affected by natural flood disasters as well as sell new policies.

Obamacare, the healthcare program in hot debate, started October first and continues to offer benefits and rates to people who have signed up for it. People who get Medicare should keep receiving benefits and people getting Social Security should continue getting their checks.

The U.S. Post Office, the Federal Reserve, and The Federal Deposit Insurance Corp will all remain open as scheduled because they are self-funded government institutions. Daily operations of each institution will continue as planned.

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