Chris Kissell
Jan 18, 2024
More than 92% of the U.S. population has health insurance, which can keep your medical bills more manageable. But there were still 26 million Americans (8% of the U.S. population) who didn’t have health insurance in 2022, according to the most recent data from the U.S. Census.
What Are the Consequences of Having No Health Insurance?
Not having health insurance can lead to large debt, affect your health if you delay care and may even hurt you at tax time, depending on your state.
Here are aspects of being uninsured that you should understand.
Medical debt
Medical debt is any balance or amount owed after receiving medical services or goods, according to Shannon P. Miller, a partner at national financial services law firm Maurice Wutscher in Philadelphia. “In a broad sense of the term, this would include amounts owed that are not past due, as well as amounts that haven’t been paid and have become delinquent and sent to collections,” he says.
If you don’t have health insurance, you’re at much greater risk of accumulating medical bills that you may not be able to pay. In a worst-case scenario, you could be sued and have your wages garnished. You might even be forced into bankruptcy.
The Commonwealth Fund’s 2023 Health Care Affordability Survey found that 38% of people surveyed said they delayed or skipped needed healthcare or prescription drugs because they couldn’t afford it. Medical debt is the major reason with 34% pointing to that as the reason they avoided care.
Having health insurance didn’t prevent medical debt, with about one-third of those with an employer-sponsored health plan or Affordable Care Act marketplace plan saying they had medical or dental care debt, according to The Commonwealth Fund.
More than eight out of 10 adults with medical or dental debt reported at least $500 in debt and 22% said they had at least $5,000 in debt. Over half of the debt came from hospital care and 37% from doctor visits.
How Can You Tackle Medical Debt?
Understanding your health insurance policy. Take time to review your health insurance plan carefully. You should know exactly what it covers and what it doesn’t. If you’re unsure, reach out to your provider.
Setting up a payment plan. Bills can still be sent to collections even if you’re making payments. If you partially pay or make regular payments but go past the due date, the remaining amount of your bill could be sent to a collections agency. Talk to your provider if you can’t afford all of what’s due. They may be willing to set up a payment plan.
Negotiating a lower price: Don’t hesitate to negotiate with the health care provider for a lower amount. Explain if you’re unable to afford the full cost and ask what they typically charge insurance companies or what Medicare covers.
Avoiding credit cards: While it might be tempting to put your medical debt on your credit cards, doing so can do more harm than good if you cannot afford to pay your credit card bill in full. Certain credit cards may come with much higher interest rates and easily increase the total amount of your debt.
Considering credit counseling: Credit counseling agencies are nonprofits that can help with your medical debt. You may use the National Foundation for Credit Counseling to find a reputable agency.
Read more here: https://www.forbes.com/advisor/health-insurance/what-happens-if-you-dont-have-health-insurance/