What if I can't afford health insurance?
<div class="user-question">Hi Frich. The cost of my health insurance is increasing and I’m not sure what my options are since we’re in the middle of the year. What’s the correct thing to do? The cost increase would be a huge strain for me.</div>
Let’s talk health insurance because, honestly, 2026 is not looking great. Healthcare premiums have skyrocketed - some people are facing hikes of up to 100% if they qualified for subsidies, and a 26% increase for those without.
I get it, shelling out money for health insurance seems pointless when you feel young and invincible. But just remember, medical debt is a major reason people end up broke or starting GoFundMe campaigns. It only takes one unexpected medical emergency to throw your finances into chaos, so it's definitely worth considering.
Here’s the silver lining: it’s not too late to get covered! Depending on where you live and whether your state has a healthcare exchange, you may still be in the enrollment window. Just head over to HealthCare.gov, click on “Get Coverage,” and search by your state. You’ll find details about typical enrollment periods and any Special Enrollment Periods (SEPs) available. SEPs can occur due to life events such as moving, losing coverage, marriage, or having a baby.
<div class="frich-tip">Frich tip: A lack of affordability can sometimes be a qualifying event - check the rules in your state.</div>
Now, here’s a little personal anecdote. Earlier in my startup journey, I thought health insurance was a waste of money and skipped out on it. Spoiler alert: I ended up with a medical emergency that had me racking up over $20K in bills after spending 36 hours in the hospital. Lucky for me, it happened at the end of February, and I was able to enroll in Kaiser insurance right away for March. Lesson learned: don’t underestimate the importance of having health insurance.
Even though some healthcare subsidies still exist, they’re not as generous as before. And the income brackets have tightened, so some people might no longer be eligible.
When choosing a plan, consider your health needs:
- Do you take regular meds?
- Got a couple of check-ups a year?
If you need minimal coverage, a high-deductible plan (a bronze plan on those exchanges) might be your best bet. These plans usually cover preventive visits and have a deductible averaging around $7,500. Plan costs vary based on age and geographic location. Bronze plans for those with subsidies are generally $50 - $250 monthly, while for those ineligible for subsidies, costs start at $250 and can go higher to more than $650.
If that feels like a lot, you could consider a Catastrophic health plan. If you’re under 30 or facing financial hardships, you can qualify. But heads up: this plan comes with a higher deductible (around $10,600) and won’t cover preventive visits, so those costs will hit your wallet hard until you reach that deductible. Additionally, monthly costs are generally at least $150, and prices go up from there. For most, these plans aren’t much of a savings on a monthly basis and can be more costly.
Now, if you go the Catastrophic route, pairing it with a Health Savings Account (HSA) is key. HSAs are a good call even if you choose a bronze plan. Here’s why HSAs are awesome:
- Contributions are usually pre-tax (or can be deductible if you contribute outside payroll).
- Your money grows tax-free (think interest and investments).
- Withdrawals for qualified medical expenses? Totally tax-free. It’s like a “triple tax advantage." So many things you buy at the drugstore qualify as medical expenses!
Just don’t confuse HSAs with Flexible Spending Accounts (FSAs) - those are often tied to your job and not portable. Plus, once the year is up, you lose any unspent money. HSAs give you more flexibility because you can carry over funds year after year, regardless of your employer.
- It's not too late to get health insurance! Visit to see your options.
- Look at your healthcare needs and pick a plan that fits.
- Consider setting up an HSA - it’ll save you money in the long run!
Found this valuable? Here are some more deep dives from the Frich team 🤝
✅ How Can I Negotiate My Medical Bills?
✅ What insurance do I actually need?
✅ What happens with your health insurance when you get laid off?
Stay smart about your health and finances!
Gwyneth Borden
