Introduction
More people are both single adults and families are providing their own funds for health care. There is a growing trend of his own freelance business, where a contract employee or employed by a company that is not health insurance benefits offerings. Many people make the mistake of the purchase price instead of value in a health care financing plan. This article provides an overview of the options for financing health care with pre-andDisadvantages of each strategy.
How much will Health Care Cost?
Understand what is health care costs it is important to choose the best strategy for financing your own needs in health care. Purchase only on the price and not value) is based (price vs performance is a common and very serious mistake. Some examples of what it will cost in the health sector contribute to illuminate the importance of value and risk transfer (insurance) for the financing of your own health care.
Routine Care: A permanentRelationship with a doctor is important, value, and you can help to avoid much more expensive disease and improve your overall health outcome. I am an example of the benefits of routine medical care with the goals of prevention of cardiovascular diseases, diabetes and administration of my sinus allergies. My last doctor's visit, including blood test = $ 248 Well Baby Check (starting from local pediatrician) = $ 160 = $ 500 Annual Physical? Cost depends on how detailed you get a physical.
Rx Drug: PrescriptionDrugs are about 10% of total healthcare expenditure [1]. Prescription drugs can be an essential component of treatment of a large or a chronic illness. These are drugs that I take with list prices from my local pharmacy. OTC Claratin (equivalent house brand) = $ 10 / month Crestor = $ 137.99 per month Astelin = $ 115.99 per month An example of a more expensive medicine that my wife regularly for chronic migraine: Topamax (generic equivalent) = $ 566.99 / month
Diagnostic tests:Diagnostic tests are an important component of most disease identification, management and treatment and are an essential component of health care costs. My recent blood test (three tables) = $ 152 X-Ray = $ 100 = $ 150 + + Mammography MRI = $ 1000 +, a complex MRI cost several thousand dollars
Emergency Care: ER visit = $ 1000 +, which is based on my experience - I have never had an ER visit, which is less than $ 1,000 in the relevant charges
Hospital Admission About 30% of healthcare costs arehospital stay. The average length of hospitalization is five days [2], with costs largely to the treatment. Heart arrhythmia (irregular heartbeat) - an example from my clients = $ 45,000, including an ER admission and then three days in the hospital
Serious illness: cancer (lymphoma) - my brother more than two years of treatment = $ 500.000 +, it is difficult to say the actual total, but when I asked if my brother was in the vicinity of more than $ 1 million of its life limited viewExpectation was completed at least 500,000 U.S. dollars paid for services provided to the cancer treatment.
Chronic Illness: A chronic disease is caused by an illness lasting a year or more, requires ongoing treatment defined. Examples include diabetes, asthma, hypertension and depression. About half of all Americans have some kind of chronic food [2]. Type 2 diabetes - Average annual cost = $ 5949 [3] Asthma - Average annual cost = $ 3192 [4]
Put all this in a huge pile, and the averageCosts of health care in Texas by the Texas Department of Insurance in 2006 was $ 7110 per person. They are $ 593 per person per month. Granted, a lot of unhealthy and high health uses but there is a glimpse at what cost of health care. If you did not have a close relative or family friend with a serious illness or injury, it is difficult to imagine the high cost of health care. Price in financing health care is more than the help with the costs of routine care.Value to me means dealing with the risk of serious illness or injury.
Choices for Health Care Financing
Cash - Just buy it when you need it and pay what it costs out-of-pocket. The major disadvantage of the "cash" or as I call it: "If we are lucky to plan ..." is that you have no protection for the risk of serious illness or injury. We have over 24% of Texans for health care with uninsured quarter of the uninsured on the "Cash" plan of choice ---6% of the total population.
Advantages:
No monthly premium / fees
Ask for discount of healthcare providers
Available for all
Disadvantages:
No financial protection against the risk of serious illness or injury
Difficulties in access to care without insurance, some health providers are able to demand payment in advance
You pay the entire bill for medical treatment
Discount Health Card - Buy when you need it and pay lesswith an "affordable healthcare" discount card. Basically, you can access network contract prices without health insurance for an annual or monthly fee. I see the plan as a variant of the "cash plan", because you have no protection for the risk of serious illness or injury. "The FTC and many states have found that although some medical discount plans provide legitimate discounts that their members, many take consumers' money and offer very little benefit in return." --Federal Trade Commission
Advantages:
Low monthly fee
Discounted care of some health care providers
Normally open to all applicants
Disadvantages:
No financial protection against the risk of serious illness or injury
Difficulties in access to care without insurance, some health care providers may receive an upfront payment
After all offered discounts, you still pay the entire bill for medical treatment
Limited Risk Management --Pay a monthly premium for a benefit insurance policy. Often marketed as "affordable health care plans," these mini-med health insurance companies usually offer a set payment amount for a particular medical treatment and a maximum benefit limit under $ 100,000. These plans do not meet the test "my brother" - would handle this type of plan with the cost of health care of my brother's lymphoma? - No, I will not sell. The health care market discount cards and limited benefit plans are aggressiveTraffic on the Internet. Just google "affordable healthcare" or "low-cost health insurance" and you'll see grapes. There is simply no free lunch in health insurance. If the plan is cheap, the benefits are limited.
Advantages:
Less expensive monthly premium
Discounted care of some health care providers
Limited insured benefit payments for medical procedures
Improved access to care
Registration few restrictions
Disadvantages:
Incompletefinancial protection against the risk of serious illness or injury
Benefit because of limited resources, some providers require advance payment
After all offered discounts and profit, you pay the balance of the bill for medical treatment
Major Medical Policy - This is your "Traditional Medical Insurance" policy for individuals and families. You pay a monthly premium for insurance that provides a wide range of health risks with asubstantial medical benefit limit, often $ 1 million or more. Most Major Medical insurance companies have now been sold, a network concept as a "PPO" or preferred provider option. Most plans feature co-payments for doctor visits and prescription drugs, the purchases made by out-of-pocket costs to reduce these routine expenses.
Advantages:
Protection against the financial risks of serious illness or injury
Provider discounts if "the net"
Improved access to health careProviders and treatments
Encourages health care
Reduced out-of-pocket costs for routine
Disadvantages:
High monthly premium costs
Applicants must qualify on Screening
Generally, no maternity
Must use "in network" provider for the lowest out-of-pocket costs
High Deductible Health Plan) (with optional Health Savings Account - This is fighting a "Major Medical Policy," with a serious illness, but onlyafter an annual deductible is exceeded. An optional tax advantage savings account (HSA Health Saving Account ") available money for health care costs down before reaching the deductible. A family insurance plan that may have qualified as a prerequisite for a Health Savings Account in 2009, a deductible of not less than $ 2400 nor more than $ 11,900 respectively.
Advantages:
Protection against the financial risks of serious illness or injury
Provider discounts if"web"
Improved access to health facilities and treatments
Access to Optional Health Savings Account to save for future medical bills with a tax advantage
Disadvantages:
Monthly premium costs (less than Major Medical plans, but still substantial)
Applicants must qualify on Screening
Generally, no maternity
Requires even more choice in health care
Larger tax deductible, and no expensive reductions in CO-pays
MoreAdvantage of this option, Health Savings Account:
Reduced taxable income in the amount of HSA account stored
Use it or leave it --- no funds are not retained for future medical use
Money saved for a wide range of health issues is available, while retaining the tax
