What is a potential effect of being underinsured?

Being underinsured means that an individual does not have enough health insurance coverage to cover their medical expenses fully. In the event of significant health issues or emergencies, this can lead to substantial out-of-pocket costs. This financial strain can occur because the person may be responsible for high deductibles, copayments, or coinsurance, and when faced with major medical bills, they might struggle to pay for care. This can result in delays in receiving necessary treatment, potentially leading to worse health outcomes.

In contrast, full coverage is not indicative of being underinsured; rather, it reflects a situation where individuals can access health care services without worrying excessively about the costs involved. Access to specialists typically requires adequate insurance, which underinsured individuals might lack, leading to barriers in obtaining necessary care. Moreover, the risk of developing serious health conditions isn’t inherently reduced by being underinsured; in fact, lacking sufficient coverage can lead to neglect of preventive care and worsening of health issues.