A lot of people don’t consider health insurance a necessity for their financial security. This may seem a bit counter-intuitive, but most people want to save money and health insurance may be deemed as an unnecessary expense. While costs may not seem that high when averaged out, a health crisis could bankrupt a family if they already have a lot of expenses and bills. In this article, we’ll address ways in which health insurance can help combat these obstacles.
Health Insurance Reduces Treatment Costs
Health insurance is important for individuals who are eligible to purchase it. There are many benefits to having a health insurance plan, in terms of both price and care, in addition to getting better access to the health care system in general. People with insurance will certainly use accessible health services more than people without coverage. And these visits will be much more affordable than they would otherwise be.
Initially, one of the most compelling reasons to buy health insurance is to defray the cost of treatment. It is also the most visible advantage. By paying less out-of-pocket, patients are incentivized to get care when they need it. Simultaneously, providers have more reason to provide care to people who could not otherwise afford their services.
Californians must show proof of health insurance when they file their tax returns. Failing to do so can cost them big time, as those who fail to comply will be charged a minimum fine of $800 for each adult on the tax return that does not have health insurance. Individuals (including those who don’t report taxable income) may incur fines that could quickly add up. Different states may have similar penalties, as well.
The penalty for not having health insurance is lower than the average cost of health insurance in most states. But when one combines it with the risk of high out-of-pocket medical costs, it’s easy to see that going without health insurance actually puts them at a disadvantage financially.
There is nothing more expensive than peace of mind. While many insurance companies offer health insurance for individuals and families, customers still have to pay a premium for the coverage. This premium cost often makes customers hesitant. But when an individual or family doesn’t have health insurance, the stress and anxiety regarding a potential illness or accident are not worth its financial cost. It can take a toll on a person mentally and emotionally, which impacts day-to-day life.