Are Americans legally required to have health insurance?
There currently is no federal law that makes health insurance a legal requirement. However, a few states across the U.S. make it mandatory to have healthcare coverage. If you live in a state where having health insurance is the law, you will have to pay a tax penalty for not complying.
Health insurance isn't mandatory at the federal level for adults, but the Affordable Care Act (Obamacare) mandates that individuals have health insurance or pay a penalty unless they qualify for an exemption. Some states also have their own individual mandates.
Only a handful of states enforce financial penalties if you don't have health insurance but it's still wise to have the financial protection. Most people without health insurance say that not being able to afford coverage is the reason that they're uninsured.
There is no longer a federal penalty for not having health insurance. But in DC, Massachusetts, New Jersey, Rhode Island, and California, the state imposes its own penalty (collected via state tax returns) if a person doesn't maintain health insurance and isn't eligible for an exemption.
Although technically, health insurance is still required by law, uninsured individuals no longer face fines. This updated law took effect in 2019, making the individual mandate irrelevant. Some states, however, enacted their versions of the individual mandate, which includes tax penalties.
Since your vehicle has the potential to cause physical or material harm, you need to carry enough insurance to cover the costs of these damages. To legally register and drive your vehicle, you need to maintain at least your state's minimum level of liability insurance.
Several states have adopted individual mandates with state tax penalties for not having health insurance. These include California, the District of Columbia, Massachusetts, New Jersey, and Rhode Island.
uninsurance has been attributed to a number of factors, including rising health care costs, the economic downturn, an erosion of employer-based insurance, and public program cutbacks. Developing effective strategies for reducing uninsurance requires understanding why people lack insurance coverage.
The law that gives everyone in the U.S. these protections is the Emergency Medical Treatment and Labor Act, also known as "EMTALA." This law helps prevent any hospital emergency department that receives Medicare funds (which includes most U.S. hospitals) from refusing to treat patients.
| Rank | State | % in last week of survey |
|---|---|---|
| 18 | California | 8.7% |
| 19 | Arizona | 8.5% |
| 20 | Oregon | 8.4% |
| 21 | South Carolina | 8.3% |
Is health insurance actually worth it?
Without insurance, you are responsible for that entire amount. But with a good insurance policy, you may only have to pay 20% of that cost, about $1,600. The impact of having health insurance is even greater for more severe illnesses because it helps you avoid large medical debts and protects your financial assets.
Seek Emergency Care When Necessary
In life-threatening medical situations, don't hesitate to call 9-1-1 or visit the nearest emergency room. Medical providers are required by law to stabilize patients in emergency situations regardless of their insurance status.
You will not need to send the IRS proof of your health coverage. However, you should keep any documentation with your other tax records. This includes records of your family's employer-provided coverage, premiums paid, and type of coverage.
While visitor insurance isn't generally a requirement to come to the US (this may depend on if your parents are required to have a visa and what type they're required to carry), an unexpected medical event such as an accident or emergency could be costly.
ACA Rules on Employer-Sponsored Health Insurance
Under the ACA, employers with 50 or more full-time employees (or the equivalent in part-time employees) must provide health insurance to 95% of their full-time employees or pay a penalty to the IRS. This penalty is quite hefty—$4,460 per employee per year (in 2024).
On a federal level, having health insurance is no longer a legal requirement. However, a handful of states in the U.S. require citizens to obtain coverage or pay a tax penalty. People buy health insurance for protection against the risk that they may get sick or injured.
If you get pulled over without insurance, even if you're a first-time offender, you're likely to get a ticket that carries fines. Fines for driving a car without insurance can reach as high as $5,000 in some states. Many states will also suspend an uninsured driver's license, even if you're a first-time offender.
The individual mandate — which requires most Americans to maintain health coverage — still exists. But starting with the 2019 tax year, there is no longer a federal penalty for non-compliance with the individual mandate.
New Jersey, California, Rhode Island, Massachusetts, and the District of Columbia require their residents to have health insurance coverage or face penalties. Vermont recommends that residents have coverage, but there's no noncompliance penalty.
Car insurance is mandatory in almost every state. State minimums and coverage types vary, but nearly all states that mandate insurance require liability coverage for property damage and bodily injury. The sole exception is Florida, which only requires liability coverage for property damage, in addition to PIP coverage.
Why should health insurance be mandatory for all American citizens?
People without insurance are also less likely than people with insurance to receive preventive services and appropriate routine care for chronic conditions, even as the importance of preventive care and the prevalence of chronic disease become more prominent elements within health care (Hafner-Eaton, 1993; Ayanian et ...
No, while travel insurance is not mandatory for travelling to the USA from India, its importance cannot be overstated.
By expanding the pool of insured, the thinking goes, the burden of paying for the sick is covered by all. But those against the mandate say a law that forces people to buy anything, including health insurance, violates guarantees of personal freedom enshrined in the Constitution.
Purpose of insurance
Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.
One of the persistent gaps is the decision by some states to not expand Medicaid, and the most imminent threat is the potential loss of Medicaid coverage for millions of people across the country as the COVID-19 public health emergency ends. High-deductibles subject many Americans to cost-sharing they cannot afford.
