Health insurance is a contract between you and an insurance company in which you pay a monthly premium and the insurer agrees to cover a portion of your medical costs. It protects you from high or unexpected health care expenses by sharing the financial risk between you, your insurer, and sometimes your employer.
In the United States, you can get health insurance through several sources:
ACA-compliant plans cannot deny coverage based on pre-existing conditions, cannot impose lifetime or annual dollar limits, and must cover the 10 Essential Health Benefits. Not all health coverage products (short-term plans, fixed indemnity plans) meet these standards.
You can go without health insurance, but you take on full financial risk for any medical costs. A single emergency room visit can cost thousands. A major illness or surgery can cost tens or hundreds of thousands. For most people, the financial protection health insurance provides — especially with Marketplace subsidies — is worth the premium cost. There is no longer a federal tax penalty for being uninsured, but some states have their own mandates.
Check HealthCare.gov to see Marketplace plans and subsidy eligibility in your area. If your income may qualify for Medicaid or CHIP, you’ll be screened for those programs when you apply. A licensed broker can walk you through all your options at no cost and help you identify the most affordable path for your household.
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