Health insurance is a crucial aspect of healthcare management in the United States. It provides financial protection against high medical costs, with around 92% of people having some type of coverage at some point during 2022.

If you’re thinking about dropping, switching or getting a new insurance plan, you may wonder if you’re required to have health insurance. While there’s no requirement to have health insurance at the federal level, you can pay a tax penalty based on your state requirements. 

Explore the legal implications of not having minimum essential coverages and why having a private health insurance plan can help you avoid possible penalties and offer protection for your well-being.

The Affordable Care Act and the Individual Mandate

At one point, the U.S. did require health insurance under federal law. The Affordable Care Act (ACA), enacted in 2010, introduced the individual mandate, which required most Americans to have health insurance or pay a tax penalty. This aimed to expand health insurance coverage across the country and reduce the cost of healthcare by spreading the risk among a larger pool of insured individuals.

However, in December 2017, the Tax Cuts and Jobs Act effectively eliminated the individual mandate penalty, also known as the shared responsibility payment, starting in 2019. This means that while the law still technically requires individuals to have coverage, there is no longer a tax penalty for not having health insurance.

State-Level Requirements

Although the federal penalty has been removed, some states have implemented their own l mandates. Currently, states like Massachusetts, New Jersey, California, Rhode Island and the District of Columbia require residents to have health insurance or face a state-level penalty. 

This typically means you must provide proof of qualifying health insurance when filing your state taxes or pay a fine on your state tax return based on your income and family size.

Why Have Health Insurance?

Even though it may not be illegal in most places to go without health insurance, there are several reasons to maintain coverage. These include:

• Financial protection. Health insurance helps cover the cost of medical bills, protecting you from high out-of-pocket costs in the event of an illness or injury.

• Access to care. Health insurance provides better access to preventive services, regular check-ups and necessary treatments.

• Peace of mind. Knowing that you are covered can reduce stress and anxiety about potential medical emergencies.

• Legal compliance. In states with individual mandates, having health insurance ensures you avoid penalties.

Private Health Insurance Plans

Private health insurance plans are an option for those who do not receive coverage through an employer or government program like Medicaid or Medicare. These plans are available through the Health Insurance Marketplace and private insurance companies like United National Healthcare.

Finding affordable private health insurance plans can be challenging, but it is possible with careful research and comparison. United National Healthcare private insurance plans are designed to provide comprehensive coverage at competitive rates. We offer a range of plans for individuals, families and small businesses, ensuring you can find a plan that fits your financial situation.

When Can You Buy Private Health Insurance?

One common question is, “Can I buy private health insurance at any time?” The answer is generally no due to the enrollment periods. However, there are specific times when you can enroll:

• Open Enrollment Period. This is the annual period when you can enroll in a medical insurance plan. In most states, open enrollment runs from November 1 to December 15.

• Special Enrollment Period (SEP). If you experience certain life events, such as losing health coverage, getting married or having a baby, you may qualify for a Special Enrollment Period. This allows you to enroll in health insurance near you outside the open enrollment period.

Take the Next Step Toward Your Health Insurance Journey

While it is not federally illegal to be without health insurance, it is highly advisable to have coverage for financial protection, access to healthcare and peace of mind. At United National Healthcare, we believe in affordable health insurance for all. We offer a helpful guide to buying private health insurance that you can use to learn about our specialized plans. Contact us today for a quote and find the ideal plan for your life situation, career and family size.