With the high unemployment rate and rising costs of health insurance, many people are left without the means to provide health insurance coverage for themselves or their families. When it becomes necessary to choose between health insurance premiums and basic needs, basic necessities come first and the health insurance coverage falls by the way. This lack of insurance can prove catastrophic if an uninsured family member becomes critically ill or requires hospitalization for any reason. Medical expenses can lead to bankruptcy very quickly if you are one of the many without sufficient health insurance coverage. The consequences can be devastating.

When you are covered under a health insurance policy, not only do you have limits to the amount you pay out of pocket each year, but the fees charged by medical providers are most often capped by previously contracted agreements between the insurance company and the medical provider. The providers are willing to do this because they know that by being on the insurance company's preferred provider list, they will acquire more patients so are willing to go with a discounted service fee in order to acquire the patients. When you go without insurance, the medical provider fees are usually substantially higher than those contracted rates. For this reason, going without health insurance is extremely risky and can lead to bankruptcy quickly.

On average, in 2010, a hospital stay lasts 5 days and costs $24,000. The exact cost depends on the reason for the stay and the length and type of treatment. A serious illness such as cancer can cost substantially more. Thus, lack of health insurance can be a direct cause of bankruptcy. When you or a family member is ill and in need of medical treatment, you don't have the option to delay or deny the treatment because you lack the necessary funds to pay for it.

Even giving birth without health insurance can be expensive, ranging from $9,000-$25,000 depending on the type of delivery and whether or not there were any complications. This in itself may not cause bankruptcy, but it could put one on the road towards bankruptcy if other financial difficulties arise.

In conclusion, although health insurance may be costly, in the long run it can keep you from bankruptcy if you encounter any serious illnesses or lengthy hospital stays. Choosing not to have health insurance is a risky choice no matter your age or current health situation because, just like you cannot pick up a flood insurance policy when a storm is coming, once you are diagnosed with an illness or admitted to the hospital, it is too late to acquire health insurance.