The Consequences of Not Having Health Insurance: Will You Get Penalized?
If you are one of the 27.5 million people in the US without health insurance, you are not alone. While it may seem like a tough financial decision to make, not having health insurance can come with several consequences, including penalties and significant healthcare costs.
What are the Penalties for Not Having Health Insurance?
The Affordable Care Act, also known as ObamaCare, mandates that individuals have health insurance or pay a penalty. The penalty for not having health insurance, also known as the individual mandate, has been eliminated in 2019. Individuals no longer face a penalty at tax time for not having health insurance.
However, while the penalty may have been eliminated, it’s still essential to have health insurance. Without insurance, you could be responsible for paying significant healthcare costs out of pocket.
The Costs of Not Having Health Insurance
When you don’t have health insurance, you may avoid preventative care, including regular check-ups and immunizations. Without basic preventative care, untreated illnesses can worsen and become expensive and challenging to cure.
For example, suppose you’re uninsured, and you experience chest pain. You may delay seeking medical attention until the chest pain becomes unbearable, causing you to go to the emergency room. You may then be responsible for a hefty bill, including the cost of the emergency room visit, diagnostic tests, and treatments.
Additionally, without insurance, you may also not have access to prescription medications, leading to higher out-of-pocket costs.
What are Your Options Without Health Insurance?
If you don’t have health insurance through an employer or the marketplace, you may consider other options, such as Medicaid or short-term health insurance plans.
Medicaid is a public health insurance program funded by the government that provides low-cost or even free health insurance to eligible individuals or families. Eligibility varies by state, so check with your state’s Medicaid program to see if you qualify.
Short-term health insurance plans offer temporary coverage for up to 364 days. While these plans may be cheaper than traditional health insurance, they may not cover pre-existing conditions or offer essential health benefits, such as prescription drug coverage.
Conclusion
While the individual mandate penalty has been eliminated, the consequences of not having health insurance are still significant. Without proper coverage, you may be responsible for significant healthcare costs and lack preventative care. Consider exploring your options for coverage and choosing the best plan for your financial and healthcare needs.
