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Going Without Health Insurance

There is no regulation regarding not having health insurance – the tax penalty for not having health insurance has also been removed at the federal level, so there is no longer a fine for being uninsured – but you do face risks if you opt to go without health insurance.

The Risks that are Being Insured

The risks of going without health insurance are primarily related to costs. Some of the significant risks that you could face by going uninsured are:

• Steep healthcare costs – Without health insurance, you may get charged a lot of dollars for care that would otherwise be covered by your plan.
• Challenge paying off expensive medical bills – Because you might be charged a full out-of-pocket price for any medical service you receive while not having insurance, you may find that you are quickly drowning in medical bills.
• State tax penalties – While the personal responsibility penalty was repealed and no longer applies from 2019 on at the federal level, there are some states that have their own health insurance penalties.
• Not looking for or postponing receiving healthcare – According to a Kaiser Family Foundation (KFF) study, about a fourth (about 24%) of the uninsured hesitate to seek required healthcare because of the high cost of uninsured healthcare. By hesitating to put your health first, you run the risk of health problems becoming worse with time.
• Unable to afford the required medication – Due to the rising of prescription drug prices in the United States, many prescription drugs are incredibly expensive, particularly without a health insurance plan to aid out. According to KFF, about 19% of uninsured people will delay or not buy the required drugs due to the cost.

Reasons Why People Go Without Health Insurance

Many persons go uninsured due to financial reasons.

According to a 2017 KFF survey, most uninsured people who are uninsured, go without health insurance since the cost is too high – about 45%. At 22%, the second most common reason uninsured persons go without health insurance is that they lost their employment or changed employers, and as a result, they lost their employer-sponsored insurance.

Other groups of individuals said that they were uninsured because they lost their eligibility for Medicaid or lost coverage through their spouse, parent, or due to change to another status.

Only about 2% of those surveyed said that they had no need for healthcare coverage as their reason for being uninsured.

Getting Health Insurance after Losing Coverage through Employer, Family Member, or Medicaid

If you lose coverage through a parent, spouse, or become ineligible for Medicaid, you can get insured.

These losses of coverage are examples of qualifying life events that make you to be qualified for something known as a special enrollment period. A special enrollment period enables you to enroll in major medical health insurance plans outside of the open enrollment period (which for 2020 coverage was run from November 1st through December 15th of 2019 and will run from November 1st through December 15th for coverage starting in 2021).

If you are eligible for a special enrollment period – which normally lasts 60 days – you will have to prove that you experienced a qualifying life event.

Nevertheless, if you lose your health insurance through an employer or family member and you believe that you may qualify for Medicaid, you can apply any time of the year as Medicaid and CHIP – two government programs seeking to offer low-cost or free health insurance to low-income individuals and families – do not have open enrollment periods.

Although you do not think that you will qualify for Medicaid or CHIP based on income alone, apply anyway, particularly if you are disabled, have kids or are pregnant.

Getting Affordable Health Insurance Coverage

If cost is what is keeping you from buying coverage, you should be happy to know that there are Affordable Care Act subsidies that you may be eligible for.

Qualification for subsides depends on your annual income and the percentage you make above the federal poverty line (FPL). If you make between 100% of the FPL and 400%, you may be eligible for some help in paying your monthly insurance premium.

You can still qualify for subsidies if you opt to purchase through an online brokerage such as Health Insurance Plans Company, as long as you’re selecting an ACA-plan with the ten essential benefits included. Health Insurance Plans enables you to affordable compare plans that are not on the government exchanges so that you can find the correct health insurance for your budget and your requirements.

Start shopping on Health Insurance Plans to find the right type of coverage that will protect your finances from the costs that come with being uninsured.

Resources and References:

• Subsidies of Affordable Care Act
• 2017 KFF Survey