Americans are increasingly concerned about the cost of health insurance, and for good reason. The price for medical insurance has increased more than 50% since 2010, according to the Federal Reserve Bank of St. Louis, citing data from the Bureau of Labor Statistics.
This rise in health insurance costs has led some individuals to consider alternative ways to fund their medical expenses or even forego insurance altogether. One example is Elliott, a self-employed consultant who is considering saving the projected $25,000 he would spend on a plan with a $15,000 deductible in 2026. Instead of paying for insurance, he plans to set funds aside in case of any health issues.
While this may seem like a cost-effective solution for those in good health, there are risks involved in self-funding healthcare. The Kaiser Family Foundation found that the average annual premiums for a single worker were $9,325 in 2025, and $26,993 for a family. For self-employed individuals like Elliott, these costs can be even higher.
The total health benefit cost per employee is expected to increase by 6.5% on average in 2026, marking the highest increase since 2010, according to Mercer’s 2025 National Survey of Employer-Sponsored Health Plans.
However, opting out of health insurance can have serious consequences. The cost of treatment for common health conditions, such as a heart attack or broken collarbone, can far outweigh the yearly cost of health insurance. Additionally, those without insurance may be more likely to put off routine care, leading to potential health issues down the line.
For individuals struggling with the cost of health insurance, there are options to help cope and retain coverage. These include opting for a catastrophic care plan, using an HSA or FSA to set aside additional funds for health expenses, reviewing employer’s plan tiers based on expected medical needs, and checking eligibility for ACA Marketplace subsidies.
While the rising cost of health insurance is a concern for many Americans, it is crucial to weigh the risks of going without coverage against the potential financial consequences of unexpected medical expenses. Making informed decisions about healthcare coverage can help protect individuals and their families in case of accidents or medical concerns.
