Jane Dotson
Being unable to afford health insurance can be a daunting and stressful situation, and unfortunately, it is a reality for many people. While going without insurance is an option, it is not recommended as it can put you at financial and health risk. There are, however, several alternatives and resources available to help make healthcare more accessible and affordable. These include short-term health plans, zero-deductible insurance, faith-based health plans, government subsidies, Medicaid, and catastrophic coverage. It is important to prioritize self-care and regular medical check-ups, even when uninsured, to prevent and manage potential health issues.
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What You'll Learn
- Short-term health insurance plans can be purchased for up to 3 years in some states
- Faith-based health plans are self-funded programs where members pay into a pool
- Medicaid is a federal- and state-administered health insurance for low-income Americans
- The Affordable Care Act (ACA) offers government subsidies to help low- and middle-income people
- Health Savings Accounts can be used to supplement a less costly high-deductible plan
Short-term health insurance plans can be purchased for up to 3 years in some states
If you can't afford health insurance, you have the option of going without it, but this is not recommended. Health insurance can help you save on care, protect you in an emergency, and may include added perks and benefits.
Short-term health insurance plans are one option for those who can't afford more permanent health insurance. These plans are typically purchased online and are available in most states. They are offered by several national companies that sell plans in numerous states, as well as regional companies that have more localized service areas. Short-term health insurance plans are not subject to the regulations of the Affordable Care Act (ACA) and do not offer comprehensive coverage. They are intended to fill gaps in coverage and can be purchased for as little as 30 days or up to 364 days, depending on the state. In some states, short-term health plans can be renewed annually and coverage can be extended for up to three years. However, it's important to note that these plans may not cover pre-existing conditions and may have limitations on health benefits.
There are other options available to make health insurance more affordable. The ACA created government subsidies to help low- and middle-income individuals and families pay for health insurance. These subsidies can offset the cost of monthly plan premiums, coinsurance, copays, and deductibles. To qualify for a subsidy, your income must be between 100% and 400% of the federal poverty line (FPL). Additionally, faith-based health plan memberships are a self-funded program where members pay into a "pool" each month, and the reserves are used to pay for qualified member medical treatments. Telemedicine is another affordable option, as visits are usually half the cost of an urgent care visit. Health centers throughout the country also offer primary and preventive care to those who cannot pay for medical services.
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Faith-based health plans are self-funded programs where members pay into a pool
If you can't afford health insurance, you have the option of going without it, but this is not recommended. Health insurance can help you save on care, protect you in an emergency, and may include added perks and benefits. There are several options available to help make health insurance more affordable. Firstly, The Affordable Care Act (ACA) created government subsidies to help low- and middle-income people pay for health insurance. These subsidies help offset the cost of monthly plan premiums, coinsurance or copays, and deductibles. There are two types of subsidies: premium tax credits and cost-sharing reductions. You can apply for these health insurance subsidies through your state's health insurance marketplace. Premium tax credits pay a portion of your monthly health insurance premiums. The credit can be sent directly to your health plan each month, or you can claim it on your federal tax return.
Another option is to purchase a temporary health plan. These plans are more affordable than comprehensive health insurance, but they do not abide by the ACA health law, and specific medical benefits are not required to be covered. Short-term medical insurance can also reject an application or deny coverage for pre-existing conditions. Zero deductible insurance is another affordable coverage option that offers benefits at rates that meet any budget. This type of insurance includes specific cash payments for sickness and accidental injuries, regardless of other coverages.
A lesser-known option is faith-based health plans. While not health insurance, these plans are self-funded programs where members pay into a pool each month. The reserves are saved to pay for qualified member medical treatments that meet the standards of the program. Faith-based health plans are offered through 501(c)(3) nonprofit charities with a religiously-oriented purpose. These plans are often referred to as "health sharing ministries" or "healthcare sharing ministries". Members of these plans contribute to a shared pool to assist fellow participants with medical expenses. This system is grounded in principles of mutual aid and community care. Faith-based health plans are typically more affordable than traditional health insurance, and they offer greater flexibility in structuring benefits. However, it is important to note that these plans are not required to cover essential health benefits and do not provide legal protection to ensure that claims will be paid.
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Medicaid is a federal- and state-administered health insurance for low-income Americans
If you can't afford health insurance, you do have options. Firstly, it's important to note that Medicaid is a federal- and state-administered health insurance program for low-income Americans. The specific eligibility requirements vary by state, but generally, individuals and families with a total household income of no more than $12,500 (for one person) or $25,750 (for a family of four) may qualify for Medicaid.
Medicaid is a vital source of healthcare coverage for millions of Americans, particularly in states that have expanded their Medicaid programs under the Affordable Care Act (ACA). As of 2025, about 21% of Americans reported having Medicaid coverage, ranging from 11% in Utah to 34% in New Mexico. The ACA has played a significant role in expanding access to healthcare for low-income households, and the American Rescue Plan Act (ARPA) of 2021 further expanded eligibility for health insurance subsidies and tax credits, making health insurance more affordable for many.
If you don't qualify for Medicaid, there are still other options to consider. Firstly, you can explore government subsidies to help offset the cost of health insurance. These subsidies are available in the form of premium tax credits or extra savings, and they can significantly reduce the cost of monthly premiums, deductibles, and copays. To determine eligibility for these subsidies, you need to compare your income to the federal poverty line (FPL). Individuals and families with incomes between 100% and 400% of the FPL are typically eligible for these subsidies.
Short-term health plans are another option for those who cannot afford long-term health insurance. These plans can provide temporary coverage, usually up to three years, and may be suitable while you wait for a decision on a more permanent plan or during periods of financial hardship. However, short-term plans do not offer the same comprehensive coverage as major-medical plans and may not cover pre-existing conditions. Zero-deductible insurance plans are another affordable option, allowing you to see any doctor or use any facility, but they may also have limitations on pre-existing conditions.
Additionally, faith-based health plan memberships are an alternative, where members pay into a "pool" each month, and the reserves are used to cover qualified member medical treatments. Telemedicine is also usually a more affordable option than in-person doctor visits, although health insurance typically doesn't cover it. Finally, health centers across the country offer primary and preventive care to millions, regardless of their ability to pay, and free and charitable clinics provide cost-effective and accessible healthcare to the working poor, uninsured, and underinsured.
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The Affordable Care Act (ACA) offers government subsidies to help low- and middle-income people
Health insurance can be expensive, and many people struggle to cover the costs. As of 2023, residents of California, Massachusetts, New Jersey, Rhode Island, Vermont, and Washington, D.C., could face tax penalties if they are uninsured. However, there are options to help make health insurance more affordable.
The Affordable Care Act (ACA) provides government subsidies to help low- and middle-income people pay for health insurance. These subsidies are available to those who do not get health insurance through their employer or are not eligible for Medicare or Medicaid. They help offset the cost of monthly plan premiums, coinsurance or copays, and deductibles. There are two types of subsidies: premium tax credits and cost-sharing reductions. Premium tax credits are the most common type of subsidy, helping to save on monthly premiums. Cost-sharing subsidies help with the costs of out-of-pocket expenses such as deductibles and copays.
To be eligible for government subsidies, your income must be between 100% and 400% of the federal poverty line (FPL). For example, in 2023, a household income of $35,000 for a three-person household is about 141% of the FPL. The American Rescue Plan Act (ARPA), signed into law in 2021, expanded eligibility for subsidies, allowing people with incomes below 150% of the poverty level to enroll in silver plans with zero premiums and reduced deductibles.
You can apply for health insurance subsidies through your state's health insurance marketplace. It is important to check your eligibility for a subsidy before purchasing health insurance on the marketplace.
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Health Savings Accounts can be used to supplement a less costly high-deductible plan
If you can't afford health insurance, you're not alone. Many people struggle to cover the cost of their health plans, especially those who earn too much to qualify for Medicaid but not enough to easily afford insurance premiums. While going without health insurance is an option, it is not recommended. Health insurance can help you save on care, protect you in an emergency, and may include added perks and benefits.
One option for those who cannot afford health insurance is to enroll in a short-term health plan. These plans can provide coverage for up to 364 days (or three years in some states) while you are waiting to make a long-term decision. However, short-term plans are not a permanent solution as they do not abide by the ACA health law, and specific medical benefits like preventive care are not required to be covered. Additionally, short-term plans can ask about pre-existing conditions and reject applications or refuse to pay for treatment traced back to a pre-existing condition.
Another option is to look into government subsidies that can help low- and middle-income people pay for health insurance. The Affordable Care Act (ACA), also known as Obamacare, has evolved to make healthcare more accessible for low-income households. The American Rescue Plan Act (ARPA) expanded eligibility for health insurance subsidies and tax credits, making it possible for more people to afford coverage.
Faith-based health plan memberships are another budget-friendly option. While not health insurance, these self-funded programs allow members to pay into a "pool" each month, with reserves saved to pay for qualified member medical treatments that meet the program's standards.
Telemedicine is another affordable option, as visits are usually half the cost of an urgent care visit. Health centers throughout the country also offer primary and preventive care to millions of people, regardless of their ability to pay.
Health Savings Accounts (HSAs) can be used to supplement a less costly high-deductible plan. A High Deductible Health Plan (HDHP) combines an HSA or a Health Reimbursement Arrangement (HRA) with traditional medical coverage. It provides insurance coverage and a tax-advantaged way to save for future medical expenses. With an HSA, you can set aside money on a pre-tax basis to pay for qualified medical expenses, such as deductibles, copayments, coinsurance, and some other expenses. Funds deposited into an HSA are not taxed, and the balance grows tax-free. You can also use the money in your HSA to pay for dental, drug, and vision expenses. Additionally, HSA-eligible plans must set a minimum deductible and a limit on out-of-pocket costs for individuals and families.
Overall, while the challenge of affording health insurance is common, there are various options available to help make it more accessible, including HSAs to supplement high-deductible plans.
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Frequently asked questions
You may be able to access financial aid to help cover the cost of health insurance. Some options include government subsidies, Medicaid, short-term health insurance, catastrophic coverage, a health savings plan, or faith-based health plan memberships.
Government subsidies help low- and middle-income people pay for health insurance. They come in two types: premium tax credits and cost-sharing reductions. Premium tax credits are the most common type and help you save on your monthly premium.
If you don't qualify for a government subsidy, you may still be able to access affordable coverage through a short-term plan, catastrophic coverage, or a health savings plan. Short-term plans can be kept for up to three years in most states and offer affordable, comprehensive coverage for a limited time. Catastrophic coverage is available through the ACA marketplace for people under 30 or those who qualify for a hardship exemption.
