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Should I Cancel My Health Insurance? An Honest Look at Costs, Risks, and Options
- KhadiYah
- 17 hours ago
- 15 min read
Most of us have had that moment looking at our budget like,
“Why am I paying this much every month…and still scared to go to the doctor?”
Health insurance is one of the biggest line items in a family budget, but a lot of people don’t really know what they’re paying for, what they’re getting, or what the real risks are if they walk away.
In this blog, we’re going to walk through the actual numbers: what the average family pays, what typical deductibles look like, how much a doctor visit costs without insurance, and what’s happening with prescriptions and denials.
Then I’ll share a real case study from my own two births—one with insurance, one without—and how herbs and real education changed how I see “coverage.” BTW, I have three children, but the first was on a military base on Tricare insurance, which is totally different My goal is not to scare you or sway you; it’s to help you count the cost with your eyes open.
Before we go any further, I want to be clear about the lens I’m writing from. I’m a Southern-dwelling (Memphis, TN) mother of five, with little ones ages 8, 6, and 1½. Everything you’ll read in this blog comes from real decisions we’ve made as a family—especially our personal experience of not carrying medical insurance for our children for several years and what that has actually looked like in daily life.
I’ll share more of my specific situations and choices down below, but I want you to know from the beginning: this isn’t theory. This is the honest, lived experience of a family that has counted the cost, prayed through it, done the math, and chosen what makes sense for our household.
Secondly, I’m saying all this as an able-bodied mama, with generally healthy kids, and a husband who’s also young and healthy. We’re in our 30s, so our medical needs are pretty simple right now.
If you’re dealing with chronic illness, special needs, high medical use, or ongoing treatments, your decision-making is going to look different. I talk about who this is and isn’t for further down because that part really matters.
Important disclaimer: This is not personal medical, legal, or financial advice. Laws vary by state, and your health situation is unique. Always talk with a licensed financial advisor, insurance broker, and/or healthcare professional before changing your coverage.
What Does Health Insurance Actually Cost the “Average” Family?
Let’s start with the big question: What are people paying?
For families who get insurance through an employer, the average annual premium in 2024 was about $25,572 for family coverage and $8,951 for single coverage. Workers themselves paid around $6,296 toward that family premium and $1,368 for single coverage—the rest was covered by the employer. (KFF Files) That means a typical family with job-based insurance is paying a little over $520 a month just for their share of the premium, before co-pays, deductibles, or prescriptions.
If you buy insurance on the Affordable Care Act (ACA) marketplace instead of through a job, it looks different. One recent analysis found that the average benchmark marketplace premium (the reference Silver plan) is about $500 a month in 2025 before subsidies. (Urban Institute) For a family of four with an income around $85,000, one example showed a yearly premium of about $19,068, but after tax credits they paid around $4,148 a year, or $346 a month. (Center on Budget and Policy Priorities) That’s still a car payment for some households.
Action steps:
Pull your last 12 months of bank statements and add up exactly what you paid in premiums.
Separate: “What I pay” vs. “What my employer pays” (look at your pay stub).
Ask yourself: “If this same amount was going somewhere else—savings, investments, herbs, or debt payoff—what would change?”
What Do You Get for That Premium?
(Deductibles & Coverage Reality)
Premiums are only half the story.
Most plans also come with a deductible—what you must pay out of pocket each year before insurance really starts paying a big portion. In 2024, the average deductible for workers in employer plans with single coverage was about $1,787. (American Hospital Association) Many families have deductibles in the $3,000–$5,000+ range for family plans, especially with high-deductible plans.
On top of that, you may have co-pays (like $20–$50 to see a primary care doctor) or coinsurance (for example, paying 20% of a hospital bill after the deductible). Some plans have an out-of-pocket maximum, which can still be many thousands of dollars a year. So even if your premium is “good,” a single emergency, surgery, or complicated pregnancy can still land you with a multi-thousand-dollar bill.
Insurance does give you access to big-ticket protections—things like major surgeries, cancer care, or long hospital stays that most people could never pay for in cash. The ACA also requires private plans to cover “essential health benefits” (like maternity, mental health, and prescriptions) and stops them from denying coverage for preexisting conditions. (KFF) But the way those benefits play out in real life can be very different from what’s written in the brochure.
Know Your Numbers:
Log in to your plan’s portal or grab your benefits packet.
Write down:
Annual deductible
Out-of-pocket max
Specialist co-pays
Emergency room cost
Ask: “In a bad year, what’s the most I could actually end up paying?”
The Hidden Drawbacks: Denials, Delays, and Networks
Here’s where a lot of people get frustrated.
Having insurance doesn’t always mean “they’ll just pay it.”
Recent surveys show that about 1 in 5 insured adults ages 30–64 said their health plan denied or delayed a prior approval request in the past year. (KFF) Another national survey found that 17% of adults said their insurer denied coverage for care their doctor recommended—and almost 60% of those people ended up delaying care. (Commonwealth Fund) On ACA marketplace plans, insurers denied about 19–20% of in-network claims in recent years. (KFF)
Then there’s the whole in-network vs out-of-network issue. Many plans, especially HMOs, only cover care from “in-network” doctors and hospitals, and may not cover out-of-network care at all except in emergencies. (HealthCare.gov) If your favorite midwife, specialist, or clinic is out of network, you may be paying near-full price on top of your premiums.
Things to Consider Before Making a Switch:
Call or check your portal and confirm:
Is your current doctor in-network?
Is your nearest hospital in-network?
Are your OB/midwife and any specialists in-network?
Ask your provider’s office how often they see denials or prior auth delays with your plan.
What Does Care Cost Without Insurance?
Now, the big fear: “If I cancel, will one doctor visit ruin me?”
Let’s look at some averages.
One large health system notes that a primary care visit without insurance often runs $150–$300 just for the doctor visit. (AdventHealth) A study from Johns Hopkins found that uninsured people calling for a new patient appointment were quoted around $160 on average. (Johns Hopkins Bloomberg Public Health)
Another analysis of cash prices found that an annual physical without insurance averages just under $400 in the U.S. (Sidecar Health) Telehealth visits are usually cheaper—many virtual clinics charge $50–$100 per visit without insurance. (Medblue)
That’s still real money, especially if you go often or need labs and imaging. But notice this: if your family’s share of premiums is, say, $500–$700 a month, that’s $6,000–$8,400 a year before you even step foot in a clinic. For a mostly healthy family, that might be a lot of money for “just in case,” especially if you’re still scared to use it.
Weighing the Costs:
Call one local primary care clinic and ask:
“What is your cash price for a new patient visit?”
“What does an annual physical cost, including basic labs?”
Compare those numbers to your yearly premium.
My Two Births: One With Insurance, One Without
Let me share a real example from my own life, because numbers are one thing—but real bills hit differently.
I had two pregnancies at the exact same hospital, both natural births. One time we had insurance. One time we didn’t. Guess what? In the end, I paid about the same out-of-pocket both times—right around $10,000.
The first time, even with Cigna insurance, I had to pay cash for my own blood work. Even with insurance involved that second time, by the time deductibles and co-pays were done, we were still near that $10K out-of-pocket mark.
The second time, I had a midwife-based model: prenatal care, follow-up for me and the baby at home, and then going into the hospital for a delayed, unplanned natural birth. That meant asking for itemized bills, negotiating prices, and sometimes delaying payments until we could afford them. It was stressful, but at least I could see the charges clearly before agreeing to anything.
If I hadn’t needed the hospital birth at all, the total cost would have been about $5,000, including a small at-home birth supply kit. Some midwives may give a discount for paying in full, like my provider did. A doula would have added about $4,000, depending on their individual rate. And even with those additions, the total still would have been less than what I paid with insurance—for a birth experience I actually chose and where I felt fully supported.
One thing people don’t talk about enough is how unpredictable medical billing is. Even if a hospital gives you an estimate, the final number can shift—and it can take months before all your bill shows up. That’s true whether you have insurance or not.
But here’s the part most families don’t know: Medical debt doesn’t function like regular debt.
Hospitals will almost always work with you.
Many offer payment plans as low as $5 a month, with zero interest.
It’s considered low-priority debt, so it doesn’t weigh on your credit the same way.
Anything under $500 in medical bills won’t even appear on your credit report.
My own approach is simple: I call the billing department, request an itemized bill, negotiate the charges, and then set up a payment plan that actually fits our budget. It’s straightforward, and it removes a lot of the fear around the unknown.
My personal routine: I call the billing department, ask for an itemized bill, negotiate the charges (they expect this), and then set up a payment plan that works for our household. No guilt, no pressure.
It goes without saying that our numbers will look different depending on your state, hospital, and insurance plan. But this is why I’m passionate about teaching people to look at total cost, not just “Do I have a card in my wallet?”
Tallying the Costs:
If you’ve had big procedures (birth, surgery), pull your EOBs (Explanation of Benefits) and:
Add up what insurance paid vs what you paid.
Ask: “Did insurance truly save me, or did it shift when and how I paid?”
What We Currently Do for Our Kids’ Medical Care
If you’re curious about what we do right now, here’s our most recent example. Just a couple of weeks ago, we scheduled an at-home concierge pediatric visit for all three of our younger children. It was $140 per child, and that price included the travel fee because we live a little farther out than the provider’s normal range.
Honestly?
It was wonderful.
I didn't know it was a thing, but it just makes sense for growing families like ours.
We do this about once a year, mostly to appease outside requirements and to keep documentation up to date. But it also lets me choose a physician who respects our parenting decisions, understands our holistic lifestyle, and doesn’t pressure me to go along with things that don’t fit our family values.
This year, we also decided to sign up for dental and vision insurance, but for a very practical reason—not fear, not pressure—just math. When we called around, the cash price for pediatric dental visits was about $400 per child. At that point, paying for the dental + vision plan was cheaper than paying cash. So, we made the choice based on what was best for the family financially.
And I’ll be honest, a lot of our comfort with this setup comes from me being an herbalist. I take care of our kids’ basic needs at home—little fevers, stomach bugs, seasonal stuff, the day-to-day things kids go through. Having that knowledge gives me so much freedom. I’m not panicking every time somebody coughs, and I’m not paying $200 for something I can safely handle in my own kitchen.
If you want to see what using herbs actually looks like in a real home with real children, I shared our full experience in I Replaced My Medicine Cabinet with Herbs. Here’s What Happened. It gives a clearer picture of the everyday issues herbs can support, so you’re not relying on urgent care for simple things.
Prescriptions: What Are We Really Paying?
Prescriptions are another place where people feel trapped. In 2021, Americans spent about $1,147 per person on retail prescription drugs. (Health System Tracker) In 2024, out-of-pocket spending on prescriptions across the U.S. hit around $98 billion, up 25% in five years. (Axios)
For adults, average out-of-pocket prescription costs are roughly $177 per year, but older adults pay much more—people 65–79 pay about $456 out of pocket on prescriptions, and those over 80 pay even more. (Health Policy Institute)
So even with insurance, a lot of people are still paying a significant chunk of their medication costs themselves. Some medications can be hundreds of dollars a month without coverage. Others can be found at low chain-store prices or through discount programs. It really depends on what you take.
Calculating the Cost of Prescriptions:
Make a list of your regular prescriptions.
Call or check:
The cash price at a big-box pharmacy.
The price with an Rx discount card (like GoodRx, SingleCare, etc.).
Compare: “What am I paying in premiums + co-pays” vs “What would cash + discount cards cost?”
Where Herbs Fit In (And Where They Don’t)
Now let’s talk herbs, because you know I’m not going to ignore that.
Herbs will never replace emergency surgery, trauma care, labor and delivery support, or certain complex treatments. Period. But a huge portion of what families deal with—minor infections, colds, sleep issues, digestion problems, blood sugar support, stress, menstrual issues—can often be supported or reduced with herbal and nutritional care when done wisely, biblically, and with real knowledge.
Think about it this way:
A single ER visit can be thousands of dollars.
A year of premiums can be $6,000+.
A solid herbal education (good books, classes, and a starter home apothecary) might be a few hundred to a few thousand dollars—but it’s a one-time or slow-build investment that keeps paying you back every time someone in your house gets sick.
Over time, using herbs for day-to-day issues can reduce how often you need urgent care, last-minute doctor visits, and certain prescriptions—but only if you actually study, practice, and respect herbs the way our ancestors did.
If you want a simple breakdown of how herbs actually work inside the body—the chemistry, the actions, and how they support different systems—I explained it clearly in The Basics of Herb-Body Chemistry: How Herbs Interact with Your Body. It’s a good starting point if you’re trying to understand why herbal knowledge helps reduce everyday medical costs.
Considerations for Switching to Herbal Medicine:
Choose 1–2 key areas (like sleep or digestion) and commit to learning the top 5–10 herbs for them.
Start tracking how many visits and prescriptions you avoid over a year once your herbal routine is consistent.
What If You Invested the Money Instead?
Let’s do a simple thought experiment.
Imagine your family’s share of premiums is $500 a month.
Over one year, that’s $6,000.
Over 10 years, that’s $60,000, not including normal price increases.
Now imagine you:
Chose a different plan (like a high-deductible plan) with a lower premium and put the difference into:
A savings account dedicated to medical expenses.
An HSA (Health Savings Account) if you qualify.
Or even long-term investments (like a brokerage account) just for health and education.
I am not saying, “Cancel your insurance and invest it all.”
I’m saying: if you’re already spending thousands a year, it’s wise to think about how much of that is protection and how much is leakage—money going out without truly protecting your household the way you imagine.
It All Adds Up:
Take your actual monthly premium and multiply by 12 and then by 10.
Ask: “Do I know where this money is really going? Or could part of it be redirected into:
A medical savings fund
Herbs and education
Debt payoff or emergency savings?”
When Canceling Might Be Dangerous
There are some situations where walking away from insurance could be very risky:
You or a family member has chronic conditions (like diabetes, heart disease, autoimmune disease) that need regular care or expensive medications.
You’re pregnant or planning to be soon.
You’re older or have a strong family history of major illnesses.
You live in a state with an individual mandate penalty (like California, Massachusetts, New Jersey, Rhode Island, Vermont, and DC) where going uninsured can cost you extra at tax time. (KFF)
In these cases, the risk of massive hospital bills or long-term medication costs may outweigh what you “save” in premiums. It may be wiser to adjust how you’re covered—like switching plan types, changing metal levels on the marketplace, or using an HSA—rather than dropping coverage altogether.
Thinking of Canceling?
Here's a Checklist:
List out:
Chronic conditions in your household
Meds you must have
Upcoming surgeries, pregnancies, or known procedures
Talk with a licensed insurance broker or advisor about:
High-deductible plans + HSA
Better network fit
Cheaper metal level that still protects the big stuff
When It Might Make Sense to Rethink (Not Necessarily Cancel) Coverage
For some relatively healthy families, the problem isn’t “I have insurance,” it’s “I’m paying for the wrong kind of insurance.”
You might:
Be over-insured for what you actually use.
Be under-using the benefits that come with your plan (annual physicals, screenings, vaccines, etc.).
Benefit from pairing a leaner plan with:
A medical sinking fund
Herbs + nutritional support
Cash-based services (like direct primary care)
You can also look at alternatives like health care sharing ministries and direct primary care memberships—but remember, these are not the same as regulated insurance, and they come with their own risks.
Make a Informed Decision:
Schedule a free consultation with a local broker (not just a website).
Ask them to show you:
One lower-premium, higher-deductible plan
One different network option
What it would look like to max out an HSA vs your current plan
A Different Kind of “Coverage”
If this blog is stirring something in you, it’s probably because you know deep down:
you can’t keep outsourcing all your family’s health decisions to a system that’s expensive, confusing, and slow to truly heal.
That’s where herbal education comes in.
My textbook “Herbal Holistic Healing” is over 500 pages of African-centered, biblically sound herbal teaching—body systems, herbs, energetics, safety, and real protocols you can use at home.
For women who want structure, mentorship, and a full training path into clinical-level work, my Holistic Practitioner Elite Program walks you through anatomy, physiology, African herbalism, safety frameworks, and building real protocols for real people.
If you’re serious about reducing your dependence on the system—without being reckless—start by building the knowledge Yah has allowed us to recover.
👉 Next step:
Start with Herbal Holistic Healing if you’re ready for a deep, self-paced foundation.
If you already know Yah is calling you to practice, look into the Holistic Practitioner Elite Program and see if the next semester is your time to step in.
Frequently Asked Questions (FAQ)
1. Is it legal to go without health insurance now?
There’s no longer a federal tax penalty for being uninsured, but several states and DC still have their own penalties if you don’t have coverage (California, Massachusetts, New Jersey, Rhode Island, Vermont, and Washington, DC). (KFF) Always check your specific state’s rules—or talk to a tax professional—before dropping coverage.
2. What are alternatives if I don’t want standard insurance?
Some people choose high-deductible health plans with a Health Savings Account (HSA), health care sharing ministries, direct primary care memberships, or just paying cash with a medical savings fund. Each of these has different risks, protections, and legal rules. Sharing ministries, for example, are not regulated like insurance and don’t guarantee payment. (Wikipedia)
3. How much does a regular doctor visit cost without insurance?
In many places, a primary care visit without insurance ranges around $150–$300. (AdventHealth) An annual physical can average just under $400, and telehealth visits often run $50–$100. (Sidecar Health) Prices vary a lot by state and clinic, so it’s always worth calling and asking for the cash price.
4. Can herbs replace health insurance?
No. Herbs can reduce how often you need conventional care and support the body in powerful ways, but they cannot replace trauma care, surgery, high-risk pregnancy management, or emergency services. Think of herbs as part of your everyday and chronic-care toolbox, not your only safety net.
5. If I’m healthy, is canceling my insurance a good idea?
“Healthy” can change quickly. Even one car accident or surprise diagnosis can create bills that would take years to pay off. For many healthy people, the better first step is to compare plans, consider a high-deductible option plus an HSA, and build herbal + financial safeguards rather than canceling outright.
6. How do I decide what’s right for my family?
List your real risks: age, conditions, meds, pregnancies, jobs, state laws.
Know your numbers: premiums, deductibles, max out-of-pocket, and cash prices.
Pray and plan: Talk with a licensed broker and, if needed, a financial advisor.
Build skills: Invest in herbal and nutrition education so your only plan isn’t “run to urgent care for everything.”
About the Author
I’m KhadiYah Preciado, founder of Yah’s Apothecary™, a biblically grounded and African-centered herb school for Black women who are serious about becoming herbal practitioners. I’ve studied both African herbal traditions and clinical herbalism for years—learning the cultural, ancestral, and spiritual context of our healing practices while also studying anatomy, physiology, pathophysiology, and phytochemistry.
My work includes the T.E.A Method™, the 4 Levels of Safety™, the 3 Stages of Illness™, and the 7 Levels of Healing™—frameworks designed to help you understand herbs the way our ancestors did, while also practicing safely and confidently in today’s world.
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