Can you survive without health insurance?

A user, who is 29 years old and self-employed, shared his frustration and inquired about the necessity of health insurance given the recent increase in his premiums. After an extensive discussion in the comments section, various perspectives and valuable insights emerged, which we will explore in this blog.

Reasons for not having health insurance

The original poster (OP) presented several reasons for considering not having health insurance:

He is generally healthy and hasn’t had significant medical expenses in the past.
He believes that any medical bills under his deductible ($5,000-$8,000) would not be covered by insurance anyway.
He argues that in case of a catastrophic accident, he would rather declare bankruptcy than pay for expensive medical bills.

Risks of not having health insurance

While the OP’s reasons may seem valid on the surface, it’s crucial to acknowledge the significant risks associated with not having health insurance:

Unforeseen medical emergencies: Accidents, illnesses, or chronic conditions can strike at any time, regardless of age or health status. Without insurance, the financial burden of these events can be overwhelming, leading to substantial debt or even bankruptcy.
Limited access to healthcare: Uninsured individuals may face barriers in accessing timely and comprehensive medical care. Many healthcare providers require proof of insurance before providing non-emergency services, such as surgeries or specialist consultations.
Financial hardship: Even if you manage to avoid major health issues, the cost of routine medical expenses, such as doctor’s visits, prescriptions, and dental care, can add up over time. Without insurance, these expenses can strain your budget.
Tax penalties: Under the Affordable Care Act (ACA), individuals who do not have health insurance may be subject to tax penalties. These penalties can be substantial, especially for higher-income earners.

Exploring alternative options

Recognizing the risks of going uninsured, the community suggested alternative options for the OP to consider:

Catastrophic health insurance: These plans offer high deductibles and lower premiums, but they provide coverage for catastrophic medical expenses, such as hospitalizations and surgeries.
Short-term health insurance: These plans are typically available for limited periods (less than a year) and offer basic coverage for unexpected medical expenses.
Health insurance through an employer: If the OP is considering returning to employment, they should explore employer-sponsored health insurance plans, which often offer more comprehensive coverage and lower premiums.
Government assistance programs: Individuals with low incomes may qualify for government assistance programs, such as Medicaid or the Children’s Health Insurance Program (CHIP), which provide free or low-cost health insurance.

Conclusion

Based on the discussions in the thread, it is evident that relying solely on personal health and financial stability to avoid health insurance is not a prudent approach. Unforeseen medical emergencies can have devastating financial consequences, and it is wise to have a plan in place to mitigate these risks.

While there are alternative options to traditional health insurance, it’s important to carefully evaluate the coverage and costs involved. By making informed decisions, individuals can protect their financial well-being and access necessary healthcare services when they need them.

If you are considering dropping or not obtaining health insurance, we highly recommend consulting with a licensed insurance agent or healthcare professional to discuss your specific situation and explore all available options.