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Costs of Not Having Health Insurance Per Year vs. Being Insured

For many Americans who don't automatically receive health insurance through an employer, the decision of whether to purchase private insurance or go without insurance can be a difficult balance between short- and long-term financial and health risks. While the cost of care with or without insurance varies widely from one individual to another, understanding the costs involved is the first step to making a good decision.

  1. Costs of Insurance

    • The cost of having health insurance includes both the cost of purchasing a policy and also the reduced prices policyholders pay for medical care. High deductible plans for private individuals and employer-sponsored plans may cost as little as several hundred dollars a month. However, in the case of a high deductible plan, the policyholder may be liable for several thousand dollars before the insurance contributes anything to the cost of care. Even when a plan has a lower deductible, policyholders may be responsible for co-payments on doctor visits and prescriptions, which can add up for individuals who have chronic medical conditions.

    Risks for the Uninsured

    • Uninsured individuals will only save money by foregoing insurance if they need care that costs less than what they would have paid in premiums and co-payments, combined. This means that young, healthy people who never experience accidents or serious illnesses will save money. The majority of people who become ill or need treatment will save by having insurance. Ultimately, going without health insurance is a risk. According to OverseasHealth.com, without insurance you can expect to pay up to $3,000 for an emergency room visit, more than $6,000 per day for a hospital stay and up to $200,000 for a life-saving organ transplant.

    Long-Term Costs

    • Over time, not having health insurance can lead to additional costs that are difficult to measure. For example, without access to low co-payment checkups, uninsured individuals can more easily develop serious health problems that are more expensive to treat without the benefit of early detection. A lack of access to affordable medication can also lead to serious health problems in the future that adequate insurance could have prevented.

    Costs to Others

    • Another cost associated with not having health insurance is the cost to others, including families and governments. Parents may feel obligated to pay for a young person's treatment, or adult children may end up caring for an ill parent who lacks insurance to pay for hospital care or an in-home health care worker. Governments spend large amounts of money subsidizing health care for the uninsured. According to a 2003 executive summary from the state of Maryland, more than $450 million goes to health care for the uninsured each year, while hospitals lose around $300 million a year in compensation. The state estimates the total economic impact of the uninsured at up to $3.7 billion a year.

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