In the United States, health insurance is known for being unaffordable.
As health care costs continue to rise, so have health insurance premiums.
In 2022, health plan costs are expected to rise 5-7% compared to 2021, and costs will continue to rise as healthcare resources continue to become strained.
Access to health care is also limited to those who are insured or those who have large amounts of money to afford emergencies or expensive procedures.
As a result, many Americans decide to go uninsured for the year.
A great risk
Choosing to go without health insurance carries great risk. The high cost of health care can lead to debt and even bankruptcy.
In fact, in 2019 it was found that 66.5% of bankruptcies in the US were due to medical bills.
While it seems like you’re saving money in the short-term by going uninsured, being subject to large hospital bills will become a financial burden in the future.
Medical expenses are unexpected and with hidden costs and overpriced services, bills can cause a financial burden.
For example, say you get a $100,000 medical bill. Without insurance, you would be responsible for 100% of the cost in full. If you don’t have the money, you’ll have to take out loans that carry interest and add to the overall cost owed overtime.
On the other hand, if you had insurance, your out-of-pocket cost is capped. On a Marketplace plan, this limit is $8700 for an individual and $17400 for a family in 2022. In the same example, you are paying just 8-17% of the total cost of the bill.
Therefore, having health insurance will help lower your out-of-pocket costs.
Legislative efforts are only short term solutions
In recent years, legislative efforts have been passed to help make health insurance more affordable for Americans.
In 2020, the number of uninsured Americans reached 31 million. The number is expected to increase due to rising healthcare costs.
In 2021, the American Rescue Plan was created to help make health insurance more affordable for a limited time to help ease the financial burden from the COVID-19 pandemic.
However,only select groups were able to qualify for premiums as low as $0 per month and the extra savings ended as of December 31, 2021, proving legislative efforts to be a temporary fix to a long-standing issue.
How to protect yourself
It is no surprise that the healthcare costs in the United States are the highest in the world.
Without insurance, you are exposing yourself to large out of pocket costs that can have long-lasting financial burdens.
Having health insurance will protect yourself financially and gives you access to healthcare.
Talk with a broker to get a customized and affordable plan that fits your needs and budget.