Penalty for Not Buying Health Insurance

Tens of millions of people in the United States do not have health insurance. Many want health insurance, but increases in premium costs have made health insurance unaffordable for an increasing number of people. Because health care in the United States has always been optional, some people just go without it. However, doing so in the future may bring penalties under the health-care reforms passed during President Barak Obama's first term in office.

Health Care Cost

• An emergency room visit can cost thousands of dollars without insurance.

  One of the main penalties for not buying health insurance is an increase in the sick or injured person's costs. Charges are generally higher for an uninsured person than an insured person. A few doctor's visits may be less than the annual cost of insurance; however, a single X-ray or prescription could cause your total costs to skyrocket.

Limited Access

• High prescription costs are often a problem for the uninsured and elderly.

  An uninsured person's health care options can be severely limited. Some doctor offices do not accept patients without insurance, while free clinics are often overcrowded and underfunded, and may not be able to offer patients the best care. Likewise, when a person does not have health insurance, he is often less likely to seek immediate attention than a person who does. This can cause future health complications.

Increased Debt

• Emergency surgery can cost an uninsured patient tens of thousands of dollars.

  While not having health insurance may not present an immediate problem for someone who is relatively young and healthy, most people who are uninsured are only one accident or illness away from major debt. Hospitals may be legally required to see patients who need emergency medical attention, but they are not required to charge you a discounted rate. Something as routine as a broken leg or even a severe allergic reaction can cause an otherwise debt-free person to go into debt overnight.

Future of Insurance

• In 2010, Congress passed legislation, at the urging of President Obama, that makes it illegal for U.S. citizens to not have health insurance. This legislation, part of nationwide health-care reform known as the Patient Protection and Affordable Care Act, will be implemented in full by 2018. It will include an expansion of Medicaid coverage to those who cannot afford health care, and charge those who do not enroll in health insurance a penalty of $695 per year, or 2.5% or their annual income, whichever is greater.