Economic Effect of Not Having Health Insurance

The costs of health care are high, and a lack of health insurance can have a big effect on your finances as well as your health. According to the Urban Institute, those without health insurance are less likely to seek preventative care and more likely to have major problems when they do enter the medical system.

Higher Costs

• Those who have insurance pay only a small percentage of the total cost of medical care. Without insurance, you'll have to pay a much higher price. The Jewish Daily Forward notes that those who do not have insurance typically pay between $1,600 and $3,300 a year for health care. The Institute of Medicine's Committee on the Consequences of Uninsurance points out that people without insurance may have to turn to using credit cards or loans to pay these expenses, which means paying interest on top of the original amount.

Bankruptcy

• Medical costs are often a factor when a person declares bankruptcy. A 2007 study in "The American Journal of Medicine" found that 62 percent of people who declared bankruptcy had more than $5,000 in unpaid medical bills.

Decreased Credit Score

• The high costs associated with health care without insurance can lead to a lower credit score if you struggle to pay your bills. The doctor's office or hospital may send the bill to collections, which will show up on your credit report and decrease your score. This negative mark will stay on your report for seven years, even if you pay off the debt. A bankruptcy can stay on the report for 10 years.

Lower Income

• Since you are less likely to get necessary health screenings when you don't have insurance, an unexpected illness may mean a loss of income, especially if you don't have a job that offers paid sick leave.