UPDATED: DECEMBER 16, 2022 | 2 MIN READ
In the United States of America, mortgage companies require homeowners insurance, and states require auto insurance, but health insurance coverage has never been required to be an American. According to the Centers for Disease Control and Prevention (CDC), currently, of the 332 million people in America, about 31 million people don’t have health insurance.
Why Are So Many Americans Without Health Insurance?
The reasons that so many don’t have health coverage have been blamed on the economy, reduced employer-based insurance providers, rising health care premiums, and reduced public health programs. The number one reason given by Americans for not having health insurance coverage is that the costs are too high.
With the Coronavirus pandemic, the economy took a great hit. After the months-long shutdown of businesses serving the public, many companies have either gone out of business or reduced the number of employees to remain in business. This reduction also impacted the ability of employers to provide health insurance coverage. Many employees can’t afford health care premiums without the employer’s subsidy to help cover the costs.
Rising health care premiums
According to the Centers for Medicare & Medicaid Services, in 2021, healthcare costs rose by $4.3 trillion dollars. After the Coronavirus Pandemic, national health expenditures are expected to rise to $6.8 trillion dollars by the year 2030. Some of the increases are due to medical providers being paid by health insurance providers per service. Paying for the number of tests and procedures encourages excessive visits and testing to increase the income of medical providers. Drug companies, hospitals, and medical providers are driving up their prices with no one opposing them.
Reduced public health programs
The measure of income is issued every year by the Department of Health and Human Services (HHS). Federal poverty levels are used to determine eligibility for certain public health programs, including savings on Affordable Care Act health insurance and Medicaid and CHIP coverage.
The 2022 federal poverty level (FPL) income numbers are used to calculate your eligibility for Medicaid and the Children’s Health Insurance Program (CHIP). 2021 numbers were slightly lower than 2022.
Can I be penalized for not having health insurance?
From the year 2014 to 2018, the federal government applied fines to the federal taxes of Americans who did not have a qualifying health insurance policy. The penalties ended in 2019.
However, certain states still have state tax penalties for residents that don’t have qualifying health insurance policies. These states include California, Massachusetts, Rhode Island, New Jersey, Vermont, and the District of Columbia. All except Vermont charge up to 2.5% of your income as a penalty on the annual state tax returns.
What are the different types of health insurance coverage available?
Depending on your employment status, income status, and eligibility requirements, several types of health insurance policies are available to Americans. It also depends on the time of year you’re trying to get health insurance coverage. There are employment-based group health insurance programs, private health insurance policies, and public health care policies.
Employment-based health insurance
Many employers use the incentive of health insurance to hire qualified employees. Full-time employees are offered health insurance with the employer paying half or even all of the health insurance premiums in a group-based insurance plan.
Private health insurance
Private health insurance is when you purchase a health insurance policy from a private health insurance provider and pay all of the premiums out-of-pocket.
Public health care insurance
Public health care insurance includes policies with Medicare, Medicaid, Children’s health insurance program (CHIP), and the policies under the Affordable Care Act. These policies have eligibility rules that must be met in order to get assistance with health coverage.
Medicare is only for people aged 65 and older and with certain disabilities. Medicaid coverage and CHIP are mainly for low-income individuals and families. If your income exceeds the poverty level limits, you can receive subsidies for health insurance through the Affordable Care Act.
Is there a time limit to purchasing health insurance?
Yes, and depending on which type of health insurance coverage you’re purchasing, the dates vary. Most states have the Affordable Care Act Open Enrollment Period from November 1st to January 15th. The Medicare Open Enrollment Period is from October 15th to December 7th. It’s best to check online in your state when open enrollment is available.
There are some exceptions to purchasing health insurance coverage outside of the Open Enrollment Period. These exceptions are life-changing, such as getting married or divorced, having a baby, losing a job, etc.
What happens if I don’t have health insurance in America?
If you don’t have health insurance coverage in America and you have a serious unexpected sickness or injury that requires you to go to the hospital, you can soon find yourself in extreme debt. Between the high costs of ambulance, surgery, hospital stay, medication, physical therapy, etc. It costs about 12 times more to go to the hospital than to the doctor’s office.
Studies show that non-elderly adults and young adults in the age group of 18-64, regardless of ethnicity, and people from Asian, Hispanic, and African American ethnicities tend to make up the highest number of the uninsured population. These demographic studies are a result of the CDC’s national health interview survey.
Most people who don’t have health insurance usually won’t go to the doctor for regular preventative care. An annual checkup that includes checking your blood pressure, cholesterol, and sugar levels can catch problems that can be managed better in the first stages rather than later when your health is much worse. After reaching a certain age, adults should be screened annually with a colonoscopy, mammogram, etc.
Without health insurance, many Americans can’t afford the required medications and will suffer because of it. The average cost of cancer medication can easily be $10,000 per month.
What percentage of Americans are without insurance?
Currently, about 8% of Americans are without health insurance. On the bright side, that number continues to drop.
How many uninsured Americans are there in 2022?
Around 31 million Americans are uninsured in 2022, according to the U.S. Census Bureau surveys.
What are the arguments for and against mandatory health insurance?
Mandatory health insurance can protect you from medical bankruptcy, premiums are less for younger adults, cover expensive prescription drugs, catch major health issues early with annual checkups, and cover medical treatments that you would not be able to cover out-of-pocket.
However, mandatory health insurance can be out of your price range, premiums may increase with age, not all insurance companies will cover you, overcrowded waiting rooms, and limited access to proper medical coverage.
What are the benefits of being insured?
The benefits of being insured can include financial protection, and preventative care, and not being charged a tax penalty.
What are some reasons for people to be uninsured?
The reasons that some Americans are uninsured are the high costs of health insurance premiums and deductibles that are hard to reach, not being eligible to buy a plan that would benefit their needs, and they may have missed the deadline for open enrollment and don’t meet the exception requirements.
What is the number of uninsured Americans?
The number of uninsured people in America is about 31 million out of roughly 332 million.
What percentage of the uninsured are children?
The percentage of children in the total uninsured population is about 10%.
Do you, as an American, need health insurance?
As we have read above, there are pros and cons to health insurance in America. While health insurance is a major expense each month, it can also prevent you from losing all your wealth when the unexpected happens. It has been shown in a study by the U.S. Department of Health and Human Services that the number of people without health insurance is declining. It’s best to be prepared in life, and we can help with our online tools to find you an affordable health insurance policy.