For some people in America, it is a matter of money or principle that they are not interested in buying a health insurance policy or medicare. Instead, they are ready to pay the fine. Let dig in detail why this is so? Young people mix the purchase of medicare with the bag of principle and budget.
In a family of three people, husband, wife, and son, their health is insured through an individual insurance policy. But when their plan got canceled at the end of the year, they experienced a limited number of options. Besides, with time, the premium of the family of three also got doubled. In this scenario, it is evident that they feel unfair. They have paid medicare insurance for years, and now they have cut off and been directed to pay higher premiums for the same policy that offers less coverage.
So if they have decided to dump their existing health care insurance, then they are not wrong. To pay a higher premium, they have to cut off-budget to the extreme; instead of undergoing so much trouble, they can bear medical bills when they get hospitalized.
Penalties can be way cheaper than higher premiums.
Under the Affordable Care Act, millions of Americans got an opportunity to have their medical coverage. It is mandatory to make the purchase of health insurance for people. But to some extent, it is a bit incentive, as not having any medical insurance means you are liable to bear tax penalties.
However, there are some cracks in the law. For some sections of society, it is not a subject of choice. These people don’t qualify for the subsidy and can’t bear the coverage—the actual situation in the USA that forbids the expansion of Medicaid under the Affordable care act.
Besides, a section of society has made a conscious decision to pay the penalty rather than buy health insurance. In some cases, it is about their principle or rebellion against the compulsion. On the other hand, some compare the penalty with insurance and choose the least expensive option.
Considering paying medical bills on own:-
One of the benefits of the health insurance policy is that policyholders negotiate for the lower rate of medical services. On the other hand, people without health insurance are billed at higher rates. But many medical service providers offer affordable self-pay rates.
A walk-in clinic costs $60 when you have insurance, and the self-pay price is $110. This price is not that high that one can’t afford. Uninsured people keep some money aside every month for their unwanted medical expenses keeping the dental coverage in mind.
In this way, no service provider will turn them away due to the lack of medicare.
It is not strange for somebody without health insurance to rack up heavy medical bills or skip treatment. Uninsured people are fortunate enough that they don’t have any significant health concerns. It is not easy for them to choose this option; there is always a burden on their shoulders.
There is a specific penalty for the uninsured, but when do you have to pay it?
According to ACA, there is a financial penalty for not buying any health insurance. But it doesn’t mean that everyone has to pay for it.
There is an exemption for certain hardships from the financial penalty, like
- Homelessness, eviction, and foreclosure
- Considerable medical debt and bankruptcy
- Domestic abuse
- Disaster, flood, and fire
- Unexpected expenses for a disabled, ill, or elderly family member
- Non-taxable income and require tax return
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