What if I don’t have insurance?
Health insurance in the United States can be expensive. Even if an employer offers a health care plan, out-of-pocket costs can be high. From 2010 to 2020, employee contributions to premium costs rose by 40%, outpacing wage growth, according to the Kaiser Family Foundation. For about 50% of the U.S. population who do not have employer-sponsored plans, costs can be much higher.
This may make it very tempting to forgo health insurance, especially if you are barely covering other basic needs, or if you are young and healthy and do not think you need significant medical care. There is no legal requirement for health insurance in the United States, although some states still impose penalties on certain residents who forgo coverage. However, health insurance is important enough to be a priority after shelter, food, and transportation to work, if you have any means to afford it. And if you don’t, there may be other options available.
What happens if I don’t have health insurance?
The Affordable Care Act was created to make it easier to obtain health insurance for those who cannot afford it. It was an attempt to make health care more accessible to everyone by reducing the number of people who cannot pay their medical bills, which increases costs for others.
The law imposed penalties for not having health insurance in an effort to prevent people from being unable to pay their medical bills. This part of the law was eliminated in 2019, transferring the authority over health care enforcement to the states. Depending on the state you live in, you may be required to pay a fee when you file your state tax return if you do not have health insurance. Check your state’s health care regulations to be sure.
Note: If you are fined by your state for not having insurance, the amount can be significant, so if you decide to take the chance of being uninsured, you should be prepared to pay that amount and factor it into your budget. You should also keep in mind that there are other financial risks associated with being uninsured, such as being unable to pay for health care costs. This can lead to significant amounts of debt if you need more care than just basic medical attention. About 17.8% of Americans with credit reports have medical debt in collections. For this reason, you should consider health insurance a necessity rather than a nice-to-have.
Reasons to get health insurance
Although you may not want to spend money on health insurance, there are important reasons it should be a high priority. Dealing with an unexpected medical emergency, such as appendicitis or a broken leg from an accident, can be very costly. According to HealthCare.gov, a broken leg cast can cost $7,500. If you need to stay in the hospital for three days, expect a bill of about $30,000.
Medical debt can bankrupt you. If you are in a car accident and break both legs, you will be in the hospital for a few days. A $15,000 bill for the broken legs and $30,000 for a three-day stay can put you in $45,000 worth of debt. Many hospitals will work with you to set up a payment plan, but the minimum payments may be more than you can afford, and it could take you decades to pay off the debt.
It makes
Health insurance makes it easy to get preventive care, so you don’t need more expensive procedures later. Taking care of small issues like ear infections or sinusitis can prevent you from developing more serious complications.
Note: Many plans help cover the cost of annual exams. Annual check-ups can identify unknown medical issues, preventing you from accumulating unexpected medical bills.
Are there affordable options?
There are several ways you can obtain affordable health insurance. If you are under 26 years old, you may be able to get coverage with your parents’ health insurance plan. Or you may be able to obtain coverage through a spouse or partner. Other consumers should explore health insurance offered by their employer, or even private health insurance – plans that may be available outside the Obamacare exchange market.
However, the most affordable option may be easily accessible through the Obamacare marketplace in your state. These platforms are websites designed to help you find health insurance plans that are suitable for you. The costs of these plans can vary significantly, and a tax credit can greatly reduce your monthly premium if you qualify for it.
Note: When choosing a plan, you may want to consider a high-deductible health plan (HDHP), which offers lower monthly premiums while requiring a higher deductible. If you choose this option, you can set up a Health Savings Account (HSA). A Health Savings Account is an account from which you can save pre-tax dollars that you can use for medical payments, including copays and deductibles.
What is the enrollment timeline?
The open enrollment period for Obamacare plans is the time of year when most people can sign up for a health insurance plan in the health insurance marketplace. These dates change each year, but they tend to fall in the fall for coverage that begins in January. If you miss the open enrollment period, you will have to wait another year to enroll unless you qualify for a special enrollment period due to a life event such as losing a job, having a baby, or getting married.
Most people can enroll at Healthcare.gov. However, residents of 18 states will need to enroll through their state’s website. If you miss the enrollment deadline, you may face state penalties if your state imposes them, so be sure to stay on top of your enrollment.
If you truly cannot afford health coverage, you may want to check if you qualify for Medicaid. You can apply for Medicaid at any time of the year.
You can also enroll in private health insurance year-round. An insurance agent can help you choose the best plan for you.
Frequently Asked Questions
What are the consequences of not having health insurance?
The main risk of skipping health insurance coverage is medical debt. Healthcare is expensive. A broken leg can cost you up to $7,500, a three-day hospital stay can run around $30,000, and a cancer diagnosis can lead to hundreds of thousands of dollars in spending. Health insurance helps cover these costs and reduces your chances of financial bankruptcy.
How much does health insurance cost?
Most healthcare costs stem from deductibles or premiums. In 2021, the average premium paid by the employee for individual coverage was about $7,700. The average annual deductible was around $1,700. This means that the average employee who used the deductible fully spent about $9,400 on healthcare in 2021.
It has been
Updated by: Yasmin Ghahremani
Was this information helpful?
Thank you for your feedback!
Let us know why!
Sources:
– Kaiser Family Foundation. “Key Facts About the Uninsured Population.”
– Kaiser Family Foundation. “Health Insurance Coverage of the Total Population.”
– Centers for Medicare & Medicaid Services. “No Health Insurance? Check If You’ll Owe a Fee.”
– Covered California. “The Penalty and Exemptions.”
– Stanford Institute for Economic Policy Research. “Health Care Debt in America Is Much Worse Than We Think.”
– Centers for Medicare & Medicaid Services. “Protections from High Medical Costs.”
– California Legislative Information. “SB-1276 Health Care: Fair Billing Policies.”
– Wisconsin Department of Health Services. “Dealing with Health Care Bills and Debt.”
– Department of Health and Human Services. “Coverage for Young Adults.”
– Centers for Medicare & Medicaid Services. “How to Lower Your Monthly Insurance Bill with Premium Tax Credit.”
– Centers for Medicare & Medicaid Services. “Health Savings Account (HSA).”
– Centers for Medicare & Medicaid Services. “Open Enrollment Period.”
– Centers for Medicare & Medicaid Services. “Health Care Dates and Deadlines for 2022.”
– Centers for Medicare & Medicaid Services. “Medicaid and CHIP Coverage.”
– Kaiser Family Foundation. “2021 Employer Health Benefits Survey – Section 1: Premiums.”
– Kaiser Family Foundation. “2021 Employer Health Benefits Survey – Section 7: Employee Cost Sharing.”
Source: https://www.thebalancemoney.com/what-happens-if-i-dont-sign-up-for-health-insurance-2385909
Leave a Reply