Source of Infographic: Simplee
How Is Your Healthcare Costing You?
Did you know that nearly 60% of bankruptcies that are filed today because of personal finances are due to medical costs? Nearly half of all Americans had trouble finding access to the services that they needed for their health because of the cost of those services. Because healthcare costs are rising at a rate that is nearly 1.5 times higher than salaries, more Americans than ever are spending more than 10% of their income on their healthcare insurance premiums. How can this get under control?
Healthcare Spending Has Been Higher Than Income Growth For Decades
The trend hasn’t changed for over 40 years – healthcare spending by families has always been higher than the income growth that families have experienced. This has created a long-term environment where a family will slowly, but surely discover that their savings accounts are being methodically drained by healthcare costs and insurance premiums. It’s a Catch-22 because families can’t afford to not be covered either – a visit with a neurologist, for example, is often billed at over $700 per hour! This is why the average Middle Class American family struggles to either find the healthcare they need or ends up filing for bankruptcy because of their healthcare costs.
Saving Plans Must Include Healthcare Costs
Many families work to have an emergency fund saved up, but those savings funds are often just for household emergencies, like a car repair or to replace a water heater. To survive financially today, the average American family must dedicate a portion of their income to an emergency fund that will cover medical issues that may be needed. Without this fund, all it takes is one serious set of circumstances to destroy a family’s financial future and cause them to consider bankruptcy.
It doesn’t have to be a lot of money that gets set aside:
• Many families find that $25 per paycheck is enough to build an emergency healthcare fund within a year, especially if two people are working.
• Try to pay co-pays that are required of you upon services rendered instead of letting them get billed.
• Ask about sliding scale opportunities as soon as possible.
• Be willing to negotiate long-term repayment options.
The Average Family Buys a Car Worth of Health Insurance Every Year!
The average American family paid $15,000 in healthcare related costs, from insurance premiums to services rendered, in the last year. That means each family, on average, could be purchasing a brand new car every year! Imagine what that kind of purchasing power could do for the overall economy every year, even if costs were reduced by just 10%? With a spending and savings plan in place, however, the average family can survive many medical emergencies and avoid having to file for bankruptcy.
What could you do today to help keep your finances on track?