Final answer:
Skipping dental and vision insurance saves on premiums but may result in high out-of-pocket costs and neglected routine care, leading to worse health outcomes and financial stress. Insurance with cost-sharing options, like co-pays or deductibles, can encourage responsible health care consumption without a significant difference in health status.
Step-by-step explanation:
Potential Downsides to Skipping Dental and Vision Insurance
Choosing not to have dental and vision insurance might save you from paying monthly premiums, but it could lead to significant financial and health-related downsides. Without coverage, you could face high out-of-pocket costs for treatments or emergencies. Moreover, people tend to skip routine check-ups when not insured, which can lead to deteriorating health conditions that are costlier to treat in the long run.
Insurance helps to manage moral hazard, as individuals know they will bear a portion of the cost and may make more conscious health choices. However, research indicates that while cost-sharing mechanisms like deductibles and copayments may lead to less consumption of medical care, they do not significantly impact overall health status. This indicates that having some coverage is better than none, even if it includes personal cost-sharing. Nonetheless, being underinsured is also a concern, as medical expenses may become a financial burden.
The Patient Protection and Affordable Care Act attempted to reduce the number of uninsured by mandating coverage and preventing denial based on preexisting conditions. Still, numerous Americans remain without insurance, potentially forgoing necessary dental and vision care, which can aggravate health issues over time.