Some Skipping Health Insurance Due to Costs

Winter is the season for health insurance open enrollment, and this year costs are expected to rise sharply — making some wonder if it’s better to skip insurance and hope for the best.

Employers offering group coverage (where most Americans get their health care) face an expected 6.7% jump in costs for 2026, the most in 15 years, according to a survey by insurance advisor Mercer.

Meanwhile, premiums for ACA health insurance (otherwise known as Obamacare) could jump by 26% next year, research group KFF reported in late October. And that could mushroom to a 114% increase if certain tax credits aren’t renewed.

For younger or healthier individuals, paying hundreds of dollars for a health policy seems like a losing bet. But if that bet goes wrong, it could cost you far more than the price of an insurance premium.

Is health insurance worth it?

It may seem like you can skate by without getting insured, especially if you’re younger or healthier. A 2024 ValuePenguin survey found that out of those who dropped their health insurance, 20% stayed without a policy for more than a year.

But although some medical care providers do give discounts for those paying in cash, a major medical event can blow your finances — and they’re more common than many of us think.

Further, age isn’t always a protection: About 6 in 10 young adults (ages 18 to 34) report at least one chronic medical condition, the CDC reported in a survey of 2013-23 data.

How about catastrophic insurance?

Unexpected medical expenses can come in all sizes. And for those who only want protection against the biggest medical bills, catastrophic insurance is an option. These policies only cover costs above $10,600.

But this isn’t usually a good idea: While the average catastrophic insurance policy costs slightly less than a regular bronze-level plan, you can often find discounts or subsidies that could make a regular policy significantly cheaper.

Instead, you’re probably better off comparing health insurance plans and finding one with the lowest premium and the most discounts you can get. If the worst happens, your future self will thank you for it.