In USA, why can't a person self-insure for health insurance just like a person can self-insure for his or her car?

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  • Jun 26,2018
  • 13 answers

In USA, why can't a person self-insure for health insurance just like a person can self-insure for his or her car?


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Insurance Answers (13)

David 14 2 months ago

They can. No law against it. Only in Virginia and New Hampshire can you self insure a car.

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mbrcatz 2 months ago

Well, you can, of course.
But it's not what smart people do, and it's not what rich people do. See, over the course of your lifetime, you're going to submit a lot more in insurance claims than you've ever paid in, in premiums.
So, people who chose to "self insure" usually go bankrupt. And complain that they don't have the $110,000 for the surgery to fix their broken ankle, and they also don't have health insurance to pay for it.
But it's your choice. You want to self insure that birth, with baby in NICU at $50,000 a day? Go for it.

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curtisports2 2 months ago

You CANNOT self-insure a vehicle.

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Insurance Pickle.com 2 months ago

Because the people that want to "self-insure" really aren't self-insuring. They're simply taking risk that they can't bank.

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Flower 2 months ago

You can buy your own health insurance. You go to your state or federal Obamacare exchange and find a plan.

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Beverly S 2 months ago

You can. The mandate is gone now.

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Judy 2 months ago

An individual can't legally just self-insure his car either,liike some businesses with sufficient resources can and do.

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Casey Y 2 months ago

By failing to purchase health insurance, you are inherently self insuring...its pretty easy, there's just a small fine associated.
There are two issues with your proposal, both stemming from the main issue...a hospital cannot turn you away if seeking treatment. So, how big of a bond do you need? $100k, 1mil, 10mil? When you exhaust the amount available in your bond...what happens? There is a reason that health insurance sold today has no limit of coverage....
I get your frustration, but you can simply pay a fine and be self insured...

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Billy 2 months ago

A person can't self-insure for his or her car. You are required by law to have insurance from an insurance company on your car.

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JoyaSee 2 months ago

You can. It's typically more expensive than if an employer pays part of it.
Medishare is one option which has people share one another's medical costs:
https://mychristiancare.org/medi-share/
You can also buy an individual plan from an insurance company. An average cost for a single person per month is about $500.

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David Clarke 2 months ago

there has to be an assistant in place so if the person has a health problem they would be taken care of

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ckngbbbls 2 months ago

you can buy insurance on your own without going through an employer..just like you can ensure your car on your own.
I have no idea why you think you cannot

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David and Stephanie 2 months ago

Apparently nobody on this site knows what "self insurance" is for cars. To clarify - the option to self insure your car varies by state, some states allow it, some don't allow it, and those who do allow it have different requirements.
Self insurance means you do not carry insurance from, private company, instead you post a bond with the state insurance commissioner for at least the amount of required insurance, and you cannot touch that money for as long as you're using that bond in place of insurance. If you cause an accident and are liable for other people's damages then they can claim against that bond the same way they would be able to claim against an insurance policy. But if you don't get in an accident you never have to touch the money.
This is not the same as buying insurance on your own, or participation in a cost sharing program.
To answer your question - the reason this is allowed for car insurance is because (some) state laws allow it as one of the valid ways to satisfy their insurance requirements. Its not allowed for medical insurance because the Federal law which requires you to carry insurance doesn't give this option. The option given by the federal law is to pay the tax penalty instead of carrying insurance.

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