The cost of health insurance in America has risen over 50% since 2010, according to the Federal Reserve Bank of St. Louis. Many are considering self-funding medical expenses due to high insurance costs, but the risks involved in this approach should be carefully considered.

A report from the Kaiser Family Foundation found that average annual premiums for a single worker were $9,325 in 2025, and $26,993 for a family. Mercer’s 2025 National Survey of Employer-Sponsored Health Plans predicts a 6.5% increase in health benefit costs per employee in 2026, the highest since 2010.

Despite the high costs, opting out of health insurance can lead to financial penalties. The price of treatment for common health conditions can far exceed insurance costs, making coverage worth it. Experts warn that lack of insurance may lead to delayed care and potential health complications in the long run.

To cope with the high cost of health insurance, options like catastrophic care plans, HSAs or FSAs, employer plan reviews, and ACA Marketplace subsidies can help. It’s crucial to explore these avenues to ensure adequate coverage while managing expenses effectively.

Read more at Yahoo Finance: I’m thinking of forgoing health insurance in 2026 because I can barely afford it. What are my options?