Health insurance is an important way to build a financial barrier that helps to protect people from expensive medical bills. However, many people may fail to complete the process of changing from the old one to a new one, and some might decide not the renew their subscription due to expenses such as monthly premiums. Even if you think you are saving money by not renewing your health insurance plan, you are setting yourself up for a financially unhealthier future. Take a deep dive into what occurs when an individual does not renew their health insurance policy and the expenses that follow.

No provision for the treatment of any medical ailments

First, it becomes apparent that the number one consequence of not renewing health insurance is that one is left financially vulnerable in case of a medical emergency. Health crises occur when least expected, and without health insurance, you will directly bear the costs of going to the emergency room, having surgery, or being admitted to the hospital. This is because as little as one hour’s gap in insurance coverage could mean that the patient would be expected to pay a significant amount out of pocket should an accident occur. For instance, expenses in the hospitals for surgeries or for extended time in the hospital can quickly reach thousands of dollars, if insurance is not in place, then all of those will have to be incurred.

Exploding Costs of Routine Care: Out-of-Pocket Expenditure

They thought that health insurance was only for emergencies not for everyday use. Check-ups, health risk assessments, immunizations, and other well-patient services commonly are low or no cost to the patient due to insurance. If people don’t get insurance though, then even basic medical services will cost much more. The aesthetics of receiving treatment frequently can be very expensive since it is out-of-pocket costs, and this means that diseases may worsen since frequent checkups or treatments cannot be afforded.

Increased Premiums When Reapplying

If you let your health insurance policy drop, then when you decide to try and get it back, you may find that the premiums are much higher. Employers know this and sometimes they make sure they penalize a wrong coverage through high premiums or making people go through another eligibility test. Further, if you have obtained any medical condition when you did not have insurance, your new application will be turned down or you will be charged higher premiums due to your new rating on the medical condition.

Possible exclusion periods for pre-existing diseases

When you allow your health insurance to lapse and then try to reinstate it after some time, diseases that were developed during the period of no insurance are considered “pre-existing conditions.” Sometimes, insurers include wait or exclusion clauses on pre-existing conditions, where even when you have returned to the policy, some treatments or drugs aren’t covered for a period. This exposes you to the likelihood of high out-of-pocket costs if you require treatment for these diseases at an early stage.

Delay in Preventive Care Appointment

By this nature, many health insurance policies come with elements of preventive services which may include among others, screening tests, vaccinations, and general health check-ups. Such services can help detect possible health problems at an early stage, which means they will be the easiest and cheapest to address. Unfortunately, a lot of people cannot afford these services since they are costly and this only creates a window for the development of small health complications, to full-blown complications that are treated with a lot more money. In the long run, the failure to make preventive care might even be more expensive than if you had made health insurance affordable in the first place.

Higher Debt Risks Due to Medical Bills

Expenses on medical care are known to be among the main reasons for taking a loan. One would be vulnerable to accumulating a large bill that will be hard to pay in case of such expenses as when you do not have health insurance. For these expenses, some people may use credit cards or personal loans, such that the accruing interest rates may take several years to clear. This form of financial pressure can linger and may strain your financial identity through the drawing down of credit scores.

Preventing a Break in Insurance

To reduce the risks above it is therefore important to renew your health insurance policy on time. Most insurance service providers have features that allow for automatic renewal or reminders for the same or you can discuss with the insurance service provider if you were to cancel the policy by default. If you are thinking of not renewing due to an expensive price, try and look for cheaper health plans or there might be chances insurance companies may offer you health insurance subsidies. Exempting oneself from insurance can be considered a method of saving money, while in fact, it is the profound danger of significant losses in the future.

Final Thoughts

Failing to renew your health insurance policy can prove very costly; from expensive emergent bills, to left out preventive services. A break in coverage as short as any of them can seriously accumulate and leave a person in debt beyond their financial ability to handle. Don’t just opt to live without insurance but you should look for an insurance plan that will give you a steady cover. Keeping coverage is cost effective and you will be relieved.