Health insurance is often touted as a non negotiable necessity, but it can feel like paying for a safety net you never use, especially if you’re young, healthy, and on a tight budget. Delaying health insurance may seem like a gamble, but there are times when it could actually save you thousands. Delaying health insurance isn’t for everyone, but if you’re financially conscious, it might be worth delaying.
Make sure you carefully weigh the risks — one unexpected medical bill can wipe out savings if you’re uninsured. In the right circumstances, however, waiting can keep your wallet healthier than your average mutual fund! Before you jump in with both feet or clutch your pearls, let’s take a look at some surprising ways that waiting on coverage could make financial sense.
Avoid High Deductibles
Deductibles on many health plans run from $1,500 to $5,000 or more before coverage begins. If you’re not paying for regular medical expenses, you might be paying out of pocket for minor health needs anyway. Delaying insurance means you don’t have to pay these hefty upfront costs.
Using Preventive Care Alternatives
Without insurance, there are many affordable ways to keep your health. Preventive care is low cost or free at community clinics, urgent care centers, and telehealth services. Without the need for an expensive insurance plan, regular check ups at these facilities can keep you in good health.
Pay for Services Only When You Need Them
If you’re healthy, paying for the occasional doctor visit or treatment out of pocket may be cheaper than paying monthly insurance premiums. For example, a basic doctor’s visit might be $100-$150, which is far less than several months of insurance payments.
No Premium Payments
Your paycheck can take a sizable bite out of health insurance premiums. In 2023, the average annual premium for single coverage was $8,435, according to the Kaiser Family Foundation. If you’re healthy and delay health insurance, you can save this cost altogether, leaving you with more money to spend on other immediate needs.
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
If you wait to buy traditional insurance and get a high deductible plan later, you can put money into an HSA. HSAs are tax free savings for medical expenses and roll over each year. This means you can build a health fund without full coverage until you really need it.
Employer Benefits Timing
If you’re starting a new job with health benefits, you may want to wait to get individual insurance until the health benefits kick in. In most cases, many companies provide coverage after a probationary period, so you can save on premiums during the waiting period.
Stay on Family Plans Longer
You can stay on your parents’ health insurance plan until you are 26. If this is you, you don’t have to rush into getting your own coverage. It saves you money and you are still covered under a family plan.
Short-Term Plans as Stopgaps
If you’re healthy and you just want minimal protection, short term health plans can fill in the gaps without the expense of full coverage. Major emergencies are usually covered by these plans, and they are much cheaper than regular insurance. They aren’t the best solution for long term needs, but can save money in the short run.
Investments in Fitness and Wellness
Invest in a healthy lifestyle instead of paying monthly premiums. Chronic illness can be prevented by gym memberships, personal trainers, healthy meal plans and regular exercise. Prevention can be cheaper than paying for insurance you may not use.
No Penalty for Delaying
The Affordable Care Act’s individual mandate penalty was effectively eliminated in 2019, meaning there’s no longer a federal fee for not having health insurance. You don’t have to worry about a fine if you’re sure about your health status and can wait to buy insurance, which will give you more money to save.
Catastrophic Insurance Options
Catastrophic plans might be an option if you want a safety net without high costs. These low premium plans cover major emergencies, but you need to pay for most routine healthcare costs. These plans can save you thousands by delaying full coverage in favor of them, and protect you against worst case scenarios.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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