Paul Sanchez
Being uninsured is a gamble with your health and finances. Without insurance, you risk facing high medical costs and overwhelming debt. Healthcare is expensive, and those without coverage are less likely to access care, instead delaying or forgoing treatment due to cost concerns. This can lead to small health problems becoming more threatening over time. In the event of an emergency, hospitals are not required to provide free treatment, and the resulting bills can be crippling. While hospitals may offer payment plans, the minimum payments could exceed your monthly budget. Medical debt can impact your ability to secure loans and affect your financial security. Therefore, it is crucial to understand the risks of forgoing insurance and explore affordable coverage options to protect your health and well-being.
| Characteristics | Values |
|---|---|
| Number of uninsured Americans | 27.1 million (2024, Q1) |
| Percentage of uninsured Americans | 8.2% (2024, Q1) |
| Percentage of uninsured working-age adults (19-64) | 10.9% (2023) |
| Percentage of uninsured children | 5.8% (2023) |
| Main reason for lacking coverage | High cost of insurance (63% of uninsured adults in 2023) |
| Medical debt | $220 billion (collective outstanding debt) |
| Average daily hospital cost | $2,000 |
| Average hospital stay | 4.6 days |
| Average total hospital cost | $13,262 |
| Average cost of common procedures involving surgery | $100,000+ |
| Percentage of uninsured adults who postponed medical care due to cost | 24% |
| Percentage of uninsured adults who lacked confidence in their ability to afford medical costs | 49% |
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What You'll Learn
Uninsured people are more likely to delay or forgo healthcare
The high cost of insurance is the main reason many people are uninsured. In 2023, 63% of uninsured adults aged 18-64 cited this as the reason they lacked coverage. Many of these people do not have access to coverage through their jobs, and some, especially poorer adults in states that have not expanded Medicaid, remain ineligible for financial assistance. Even with subsidies, marketplace coverage may not be affordable.
Uninsured people are less likely to have a regular place to go when they are sick or need medical advice. They are also less likely to receive necessary follow-up screenings, resulting in an increased risk of being diagnosed at later stages of diseases, including cancer, and higher mortality rates. They are also more likely to have negative health consequences. For example, uninsured children with common childhood illnesses and injuries do not receive the same level of care and are at higher risk for preventable hospitalizations and missed diagnoses of serious health conditions.
Uninsured people often face unaffordable medical bills when they do seek care. Nearly half (49%) of uninsured adults say they have difficulty affording healthcare costs, more than double the share of those with private insurance (21%). These costs can quickly translate into medical debt, which can affect other aspects of their finances, such as applying for loans.
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Medical debt can lead to bankruptcy
The cost of healthcare is a significant burden for many people, and medical debt contributes to a large number of bankruptcy filings in the United States. People often file for bankruptcy after serious illnesses and unexpected accidents, especially when medical bills are not covered by insurance or the patient cannot afford the high deductibles. Medical debt can quickly become overwhelming and affect other aspects of a person's finances, such as their ability to obtain loans.
Uninsured individuals are more likely to delay or forgo necessary medical care due to the high costs involved. In 2023, nearly half (46.6%) of uninsured adults aged 18 to 64 reported not seeing a healthcare professional in the past year, compared to 15.6% with private insurance and 14.2% with public coverage. This delay or lack of access to healthcare can lead to more serious health issues and, consequently, more substantial medical bills.
While healthcare providers are not legally required to provide services to uninsured individuals, emergency rooms in hospitals that participate in Medicare are obligated to provide emergency care regardless of a patient's ability to pay. However, the cost of emergency care can be extremely high, and without insurance, individuals may be faced with substantial medical debt.
Medical debt is considered an unsecured debt, meaning it is not backed by any property or asset. In a Chapter 7 bankruptcy, a trustee sells the debtor's eligible assets to repay creditors, and any remaining unsecured debts, such as medical debts, are discharged. Chapter 7 bankruptcy can provide a fresh start for individuals overwhelmed by medical debt, but it may also result in the loss of property, including homes.
For those who do not qualify for Chapter 7 due to income or other factors, Chapter 13 bankruptcy offers an alternative. Under Chapter 13, a repayment plan is created based on the individual's ability to pay, typically over three to five years. This option can help individuals reduce their medical debt substantially and protect their assets, such as cars and homes.
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Lack of insurance can impact your ability to get a loan
The high cost of insurance is the main reason why many people lack health insurance coverage. In 2023, 63% of uninsured adults aged 18-64 cited this as the reason they lacked coverage. Many uninsured people do not have access to coverage through their jobs, and some, especially poor adults in states that have not expanded Medicaid, remain ineligible for financial assistance. The inability to seek treatment for health conditions and the burden of medical debt are two significant risks of being uninsured. Medical debt can quickly become overwhelming and impact other aspects of an individual's finances, such as their ability to obtain loans.
Uninsured individuals are less likely to access healthcare and more likely to delay or forgo treatment due to the cost. They may end up paying higher charges for the same services and be charged full price out of pocket. This can lead to a cycle of debt that affects their financial security and their ability to qualify for loans. While emergency rooms in hospitals that participate in Medicare are legally obligated to provide emergency care regardless of insurance status, the lack of insurance can still impact an individual's ability to pay for ongoing treatment or follow-up care.
The impact of lacking insurance can result in decreased access to care, even for short periods. Uninsured adults are more likely to postpone health care or go without it altogether due to concerns over costs. They may not have a regular place to go when they are sick or need medical advice, and they are less likely to receive necessary follow-up screenings. This can lead to higher mortality rates and more advanced disease stages at diagnosis.
The financial implications of lacking insurance can be significant. Medical debt is a leading cause of bankruptcy in America. The cost of healthcare, even with insurance, is expensive, and without insurance coverage, individuals are at a greater disadvantage. The accumulation of medical debt can affect an individual's credit score and their ability to qualify for loans.
Loan insurance, also known as loan protection insurance or credit insurance, can help protect individuals from defaulting on their loans in the event of unforeseen circumstances, such as unemployment, illness, or injury. It safeguards their credit score from the impacts of late payments or defaults. However, loan insurance increases the overall cost of the loan, and the added security may be unnecessary for those with adequate alternative insurance coverage. Before opting for loan insurance, individuals should carefully consider their budget and assess whether the added cost is justified by their level of risk and existing coverage.
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Healthcare providers are not legally required to treat uninsured people
While the cost of insurance is a significant factor in why people go without coverage, the consequences of lacking insurance can be dire. People without insurance coverage are less likely to access care and more likely to delay or forgo it due to the costs. Uninsured adults are more likely to forgo necessary care, with nearly half of uninsured adults aged 18 to 64 reporting that they did not see a doctor or healthcare professional in the past year.
The high cost of healthcare means that even with insurance, costs can be prohibitive. However, without insurance, individuals are at a much greater disadvantage and risk. Medical debt is a leading cause of bankruptcy in America, and the inability to seek treatment for health conditions can have a detrimental impact on one's health and well-being.
While emergency rooms in hospitals that participate in Medicare are legally obligated under EMTALA to provide emergency care, regardless of a patient's ability to pay, this does not apply to individual doctors' offices or medical groups without an emergency department. Healthcare providers are not legally required to treat uninsured people outside of these emergency circumstances.
In non-emergency situations, uninsured individuals may be denied treatment or face significant challenges in accessing care. They may be charged full price for healthcare services, resulting in overwhelming medical debt. Uninsured individuals may also face legal action from hospitals or medical practices if they cannot afford the cost of care.
The financial burden of unexpected medical expenses can be mitigated through Health Savings Accounts (HSAs), which offer tax advantages and allow individuals to set aside money specifically for qualified medical expenses. Additionally, community clinics provide low-cost care for uninsured individuals, and some providers offer financial assistance programs or payment plans to help make treatment more affordable. However, these options do not replace the comprehensive protection provided by health insurance coverage.
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Uninsured people are more likely to have chronic illnesses
The high cost of insurance is the main reason many people are uninsured. In 2023, 63% of uninsured adults aged 18-64 cited this as the reason for their lack of coverage. Many of those who are uninsured do not have access to coverage through their jobs, and some, especially poor adults in states that have not expanded Medicaid, remain ineligible for financial assistance.
Uninsured people are more likely to delay or forgo healthcare due to costs. They are also less likely to have a regular place to go when they are sick or need medical advice. In 2023, nearly half (46.6%) of uninsured adults aged 18 to 64 reported not seeing a doctor or healthcare professional in the past 12 months, compared to 15.6% with private insurance and 14.2% with public coverage. Over one in five (22.6%) adults without coverage went without needed care in the past year because of cost, compared to 5.1% of adults with private coverage and 7.7% of adults with public coverage.
A study by the Transamerica Institute revealed that 49% of the uninsured in 2019 suffered from a chronic illness. Six in ten Americans have been diagnosed with a chronic health condition, such as high blood pressure, high cholesterol, heart disease, or obesity. Uninsured people with chronic illnesses are four to six times more likely to have problems accessing care than those with insurance.
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Frequently asked questions
Without insurance, you may not be able to afford medical care and may end up postponing necessary doctor's visits. 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 is a common issue for those without insurance, which can lead to bankruptcy. Even with insurance, healthcare is expensive, but without coverage, you are at a much greater disadvantage.
Hospitals and emergency rooms must provide care in an emergency, but this does not mean it will be free. For example, three days in the hospital might cost $30,000. Once your condition is stable, they can discharge you if you do not have insurance.
Without insurance, many cannot afford the high cost of prescription drugs. A KFF survey found that 19.8% of adults under 65 delayed filling prescriptions or didn't re-up due to cost.
Uninsured adults are more likely to forgo necessary care and are less likely to access it. This can lead to small health issues becoming more threatening over time.
