Is it OK not to have health insurance?
Asked by: Dr. Kaitlin Purdy PhD | Last update: November 29, 2025Score: 4.6/5 (14 votes)
Is it a bad idea to not have health insurance?
The no-insurance penalty no longer exists. But it's still a terrible idea to forego health insurance. One broken leg or emergency heart attack where you could end up several days in a hospital bed could cripple you financially for life. Big big risk.
What happens if I decline health insurance?
Those who choose to decline coverage during initial enrollment will not be covered under their employer's insurance plans or pay any premium deductions. They can only enroll in coverage outside of their eligibility window during a company's open enrollment period or in the event of a qualifying life event (QLE).
Does the IRS penalize you for not having health insurance?
The fee for not having health insurance (sometimes called the "Shared Responsibility Payment" or "mandate”) ended in 2018. This means you no longer pay a tax penalty for not having health coverage. If you don't have health coverage, you don't need an exemption to avoid paying a tax penalty.
Is it illegal to not be on health insurance?
New Jersey, California, Rhode Island, Massachusetts, and the District of Columbia require their residents to have health insurance coverage or face penalties. Vermont recommends that residents have coverage, but there's no noncompliance penalty.
Life without Health Insurance: Jaime
What states penalty for no health insurance?
Some states (CA, MA, NJ, and RI) and DC have adopted individual mandates with state tax penalties for not having health insurance. One state (VT) also has an individual mandate but does not impose a tax penalty for not having coverage. Check with your tax advisor or state insurance department for more information.
Are Americans still required to have health insurance?
Health insurance coverage is no longer mandatory at the federal level, as of Jan. 1, 2019. Some states still require you to have health insurance coverage to avoid a tax penalty.
How much do you have to pay irs if you don t have health insurance?
The Tax Cut and Jobs Act (TCJA) repealed the penalty (made the penalty amount $0) starting with tax year 2019. But you may wonder, “Do I need health insurance to file taxes after the ACA penalty was repealed?” The answer is no. You no longer will be penalized for not having health insurance.
Can you be denied medical treatment without insurance?
Because of EMTALA, you can't be denied a medical screening exam or treatment for an emergency medical condition based on: If you have health insurance or not. If you can pay for treatment.
Can I ask for money instead of health insurance?
It is legal to offer employees cash in lieu of health plan benefits, but it has to be done appropriately through a cafeteria plan that includes a “cash-in-lieu” agreement. If they opt out for cash in the agreement, they will be taxed on those funds as if they were wages.
Should I get paid more if I don't take health insurance?
Employers don't have to offer a higher salary to employees who opt out of benefits, like health care coverage. In fact, going down that path could lead to more headaches in the long run. For starters, an employee's need for benefits could change at any time due to death, divorce, etc.
Can I opt out of health insurance?
Can you cancel your health insurance policy at any time? You can cancel your group coverage anytime if you don't pay your health insurance premiums through payroll deductions on a pre-tax basis. But if your premium payments use pre-tax dollars, the IRS considers your group policy a Section 125 plan or cafeteria plan.
Can I survive without health insurance?
What are the financial implications of being uninsured? Uninsured individuals often face unaffordable medical bills when they do seek care. These bills can quickly translate into medical debt since most people who are uninsured have low or moderate incomes and have little, if any, savings.
Is it better to have health insurance or not?
Health insurance provides important financial protection in case you have a serious accident or sickness. People without health coverage are exposed to these costs. This can sometimes lead people without coverage into deep debt or even into bankruptcy.
Why do some people not want health insurance?
The high cost of insurance was reported for more than half of all uninsured nonelderly adults and uninsured children as a reason for their uninsurance. Job-related reasons were the second most common explanation for uninsurance for both uninsured adults (41 percent) and children (31 percent).
Is the IRS still penalizing for not having health insurance?
In 2023, you are no longer required to pay a federal tax penalty for remaining uninsured. However, that may not apply to you if you live in a specific state. For those in California, you are still required to have health insurance and could be subject to a fee should you remain uninsured.
Does having health insurance affect your tax return?
Whether you get financial help or not, health coverage is part of filing your taxes. Unless you report that you had health coverage, you may have to pay a state tax penalty. If you received federal or state financial help, you'll report that as well.
Is the Affordable Care Act still in effect?
Together with the Health Care and Education Reconciliation Act of 2010 amendment, it represents the U.S. healthcare system's most significant regulatory overhaul and expansion of coverage since the enactment of Medicare and Medicaid in 1965. Most of the act's provisions are still in effect.
Is it cheaper to not have health insurance in the US?
The Bottom Line. Healthcare is expensive—even with insurance. However, those who don't have insurance coverage will be at a much greater disadvantage. The inability to seek treatment for health conditions and the crushing weight of medical bills are two big reasons to obtain coverage.
What happens if you don't pay health insurance?
If you miss a monthly premium payment
Your health insurance company could end your coverage if you fall behind on your monthly premiums. A short period after your monthly health insurance payment is due to pay all owed premiums to avoid losing coverage.
What is the best healthcare insurance?
Investopedia's analysis ranks Kaiser Permanente as the best health insurance company for 2025 because of its blend of affordability and low customer complaints. UnitedHealthcare and Aetna also earned top marks. We evaluated nine insurers using dozens of criteria, such as customer satisfaction, plan types, and costs.
Is $200 a month good for health insurance?
Health insurance that costs $200 per month is a good deal in California. Silver plans typically cost $513 per month for a 21-year-old or $656 per month for a 40-year-old. The best way to get cheap rates is to use health insurance subsidies, which lower the cost of an insurance plan based on your income.