Financial trouble is brewing for healthcare in America. Most Americans want to live however they want, abuse their bodies however they want, and run to the doctor and emergency room whenever they want. All of this is because most Americans don’t have to pay for it and they expect that their employer and health plan will pay for it. They feel entitled to use the healthcare system as much as they want, whenever they want, wherever they want, -without having to pay for it- and their employer gets the bill. If an employee can meet their annual deductibles they will often take full advantage of the system and get every test and see every specialist they can. Just because they can. This abusive mindset is a deadly cancer and the abuse on the system is beginning to catch up. But unfortunately, the majority of these costs still have yet to be paid for. The system is broken and the financial toll will be devastating when it finally arrives.
The time is now to make the choice to get healthy or not. You may not be able to afford health insurance in the future. The best health insurance is good health and preventive care. Take care of your body and keep it from breaking down and purchase low cost, affordable high-deductible plans for serious and expensive medical needs.
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The average annual family premium climbed astronomically from $5,700 in 2000 to $13,300 in 2009. With rising premiums expected to continue at the same rates of increase over this decade the projected annual family premiums are expected to increase from the current $14,000 to an average of $27,500 by 2019. Although the share of total premiums that employees pay has remained fairly stable (16% for single coverage; 28% for family coverage), most of this cost increase will be passed along to be paid for by the employers, further reducing profits and potentially threatening employer sustainability. Paying 72% of $14,000 annually ($10,080) is far cheaper for an employer to afford than the anticipated 72% of $27,500 annually ($19,800) which may realistically be the case in less than only 9 years from now.
The sad reality is that our current healthcare model in the U.S. has made many people believe that they do not have to be responsible with their health. As a result of the comprehensive insurance plans provided for most employees, many Americans have become lazy and complacent about their health. As a result of only paying co-pays and small deductibles, they also do not understand the true costs of their health (and illnesses). Having good health will cost you less money. Imagine if employers paid for all the groceries for their employees, how often would the employees choose to eat hamburger helper instead of filet mignon? When someone is using a service and not paying for it, it will get abused.
National Health Expenditures, 2007
- Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group.
Total = $2.241 Trillion
Most Americans currently receive their health insurance from their employers. However, the healthcare landscape is changing and the costs are quickly rising. The U.S. alone now spends almost $2.5 Trillion per year on healthcare expenditures with 62% of that being spent on physician and hospital visits and prescription drugs. It is estimated that health care costs for chronic disease treatment alone account for over 78% of national health expenditures. Many of these costs are unnecessary and can be dramatically reduced through preventive medical care, proactive health & wellness programs, appropriate use and interaction with health care services, and healthier lifestyles. Unfortunately much of this bill is paid for by employers and most employees have no idea of how expensive their healthcare truly is.
Something has to give. Hopefully it’s not your financial future.
Take preventive action and contact us.
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