Understanding the consequences of not having health insurance is essential to make informed decisions about your healthcare coverage. In this section, we’ll explore the potential impacts and risks that come with being uninsured.

Financial consequences

The risks of going uninsured are primarily cost-related. Some of the main risks that you could face by going uninsured include:

Higher charges for the same services

Without health insurance you may get charged much more for care that would otherwise be covered by your plan. This is because no one—usually the insurance company—will be subsidizing your cost of care. As a result, you may have to pay higher charges for the same services. You will have to pay for everything out of pocket, and if you cannot afford the cost of care, the hospital or medical practice could take legal action against you.

Medical Debt

Since you might be charged out-of-pocket full price for any healthcare you receive while not having insurance, you may find that you’re quickly drowning in medical bills. Medical debt can become quickly overwhelming for many individuals and affect other aspects of their finances. Carrying extra debt could make it harder for you to apply for a student loan, a mortgage, or a car loan.

State Tax Penalties

While the individual mandate was repealed and no longer applies from 2019 on at the federal level, there are states with their own health insurance penalties. If you don’t have health insurance,  could end up paying a penalty for no health insurance. Therefore, you should make an effort to find health insurance that works for your needs.

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