Why Have Health Care Coverage

Let’s talk about why having health care coverage is so important. Having adequate health care coverage is a safety net that both helps us stay healthy and reduces the risk of incurring large medical debt. Let’s explore how.

Medical reasons: We know that without health care coverage, people are less likely to go to the doctor for regular check-ups or because they feel sick. This means they might not get important tests that catch problems early. In fact, serious illnesses like cancer are more likely to get diagnosed much later, when it’s harder to treat, making those who are uninsured more likely to die from their disease.

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Or what if someone gets so sick that they need to go to the hospital? Without insurance, they are likely to get fewer tests and treatments while hospitalized, and sadly, they also have a lower chance of surviving.

Overall, people without health insurance tend to be sicker and have shorter life expectancies compared to those with health care coverage. That’s why having health insurance is so important—it helps people live longer and healthier lives.

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Now, let’s talk about the financial consequences of not having health care coverage.  If someone needs care, they might not be able to afford the doctor’s visit, or the treatment the doctor recommends. If they do opt to receive the recommended care, the costs can add up very quickly.  In fact, some people have to choose between paying for medical care and buying necessities such as food or clothing.

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Not only can medical expenses force tradeoffs in spending for critical items, but the bills can also negatively affect your long-term financial security. For example, medical debts over $500 can hurt your credit score. A low credit score then makes it hard to get a loan to buy important things that we need to live or go to work, such as a refrigerator, a car, or a house.

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Most people without insurance don’t have much savings, so these bills can quickly turn into big debt. In 2021, uninsured adults were over twice as likely to have trouble paying medical bills compared to those with insurance.

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You might also be interested to know that debt collectors call people about medical bills more than any other type of debt.  Although medical debts under $500 are no longer reported by big credit agencies, given the high the costs of healthcare in the U.S., it’s not hard to get to that $500 mark. Medical debt is also not equally distributed throughout the population. In Kentucky, communities of color have twice the rate of medical debt than that of white communities.

 

Nationally, many people with health care debt have had to change where they live, and some have even lost their homes or declared bankruptcy because of it.  In the U.S., about two-thirds of bankruptcies are related to medical debt or time off work due to illness.

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So, while paying for health insurance might seem like a waste of money, not having it can have harmful consequences for your medical and financial wellbeing. Having health insurance helps reduce those risks and increases the odds that you will be able to get the care you need, when you need it.