More people, including adults and families themselves to provide funding for health care. There is a growing trend to be your own independent business owner, an employee of the contract or be employed by a company that does not offer health insurance benefits. Many people make the mistake of prices instead of the value of buying a health care funding plan. This article gives an overview of options for financing health care benefits and disadvantages of each strategy.
What is health?
Understanding what the cost of health care is important to decide the best strategy for financing their own health needs. Purchase based on price, not the value (price relative to earnings) is a common and serious mistake. Some examples of what can cost health aid the importance of value and risk transfer (insurance) in funding their own care.
Routine care: Having an ongoing relationship with a physician is an important value and can help avoid costly diseases and improve overall health outcomes. I am an example of routine medical care benefits with cardiovascular disease prevention objectives, diabetes and managing my sinus allergies. My recent visit to the doctor, which includes blood = $ 248 Check baby well (local pediatrician) = $ 160 = $ 500 annual physical? The cost depends on how to develop a physical being made.
Rx Medications: Prescription drugs are about 10% of total health expenditure. [1] Prescription drugs can be an important component of treatment of acute or chronic illness. These are drugs that I take with price list at my local drug store. OTC Claratin (equivalent private label) = $ 10 / month = $ 137.99 Crestor / month Astelin 115.99 = $ / month An example of a more expensive drug my wife taken regularly for chronic migraine: Topamax (generic equivalent) = $ 566.99 / month
Diagnostic tests: Diagnostic tests are an important part of most disease identification, management and treatment, and are an important component of health care costs. My recent blood test (three panels) = $ 152 X-ray Mammography = 150 $ 100 + $ = 1000 $ + = + RM; a complex MRI can cost several thousand dollars
Emergency Care: Visit ER = $ 1,000 +; This is based on my experience - I have never had a visit to the emergency was less than $ 1,000 billed charges
Hospital Admission About 30% of health care costs for hospitalization. The average length of a hospital stay is five days [2] strongly dependent treatment costs. Cardiac arrhythmia (irregular heartbeat) - Example of one of my clients = $ 45,000 including an emergency admission, then three days in hospital
Major diseases: cancer (lymphoma) - My brother more than two years of treatment = $ 500,000 +; It is difficult to know the actual total, but when I called to see if my brother was about to exceed its $ 1 million lifetime limit the wait was at least $ 500,000 of benefits paid to complete the treatment of cancer.
Chronic Diseases: A chronic disease is defined by a medical condition that lasts a year or more that requires ongoing treatment. Examples include diabetes, asthma, hypertension and depression. About half of all Americans have some form of chronic food [2]. Type 2 Diabetes - Average cost = $ 5,949 [3] The annual asthma - Average Annual Cost = $ 3,192 [4]
Put it all into a giant pile and the average cost of health care in Texas, according to the Texas Department of Insurance in 2006 was $ 7.110 per person. That's $ 593 per month per person. It is true that includes many unhealthy and high medical uses, but offers a perspective on the costs of health care it. If you have not had a close relative, a friend or family member suffering from a serious illness or injury, it is difficult to imagine that the high cost of medical care. Value of health financing is to help with the cost of routine care. Value for me is to take the risk of illness or serious injury.
Health financing options
Cash - Just buy when you need it and pay the cost out of pocket. The big disadvantage of "Cash" or what I call the "If we are lucky plan ..." is not protected against the risk of illness or serious injury. Over 24% of Texans without health insurance with a quarter of the uninsured in the plane of "Cash" by choice --- about 6% of the entire population.
Benefits:
None / monthly premium costs
Having cash discount from healthcare providers
Available for all
Disadvantages:
No financial protection against the risk of serious illness or injury
Lack of access to care without insurance; Some health care providers may require prepayment
You pay the entire bill for medical treatment
Health discount card - buy when you need it and save with discount card "Affordable health." Basically, you go contracted network tariffs without health insurance policy for an annual or monthly fee. I look at this plan as a change of plan "Cash" as it has no protection against the risk of serious illness or injury. "The FTC and many states have found that if some medical discount plans provide legitimate discounts that benefit their members, many of which take consumers money and offer very little in return." - Federal Trade Commission
Benefits:
Low Monthly Fee
The certain health care providers care products
Usually available for all candidates
Disadvantages:
No financial protection against the risk of serious illness or injury
Lack of access to care without insurance; Some health care providers may require prepayment
After the reductions offered, still pays the entire bill for medical treatment
Limited Benefit Plan - pay a monthly premium for a defined benefit insurance policy. As often marketed as "affordable health care," these health insurance plans Mini-Med usually offer payment amount established for the treatment of specific health care and maximum profit of less than $ 100,000. These plans not follow the "test my brother" - this type of plan would face my brother lymphoma health care costs? - No, I will not sell them. Discount cards for health plans and limited services are marketed aggressively internet. Just Google "affordable health care" or "low-cost health insurance" and you will see clusters. Not only free lunch in health insurance. If the plan is not expensive, the benefits are limited.
Benefits:
Monthly premium Cheaper
The certain health care providers care products
Secure payments limited benefits for medical procedures
Improving access to care
Few enrollment restrictions
Disadvantages:
Incomplete financial protection risk serious illness or injury
With limited benefits, some health care providers may require prepayment
After any rebates and payment of benefits, you pay the remaining balance of the bill for medical treatment
Major health policy - this is his "traditional health insurance" for individuals and families. You pay a monthly premium for an insurance policy that covers a wide range of health risks to the substantial benefit limit, often $ 1 million or more. Most major medical insurance policies sold today use a network concept called "PPO" or Preferred Provider Option. Most plans have copays for doctor visits and purchases of prescription drugs that reduce the cost of routine health expenses on handheld drugs.
Benefits:
Protection against financial risks of illness or serious injury
vendor rebates if "in the network"
Improve access to health care providers and treatments
Encourages preventive health treatments
Reduce costs out of pocket for routine care
Disadvantages:
The high cost of monthly premiums
Applicants must qualify based on health examinations
In general, no maternity coverage
You must use providers 'network' to cut costs out of pocket
Deductible Health Plan Alto (with optional Health Savings Account) - is a "major medical policy" to deal with a serious illness, but only after an annual deductible is exceeded A savings account with tax benefit. option (HSA, "Health Savings Account") is available to put money on health care costs before reaching the franchise. A family insurance plan qualifies as a prerequisite for a health savings account in 2009 may have a deductible of no less than $ 2,400 nor more than $ 11.900.
Benefits:
Protection against financial risks of illness or serious injury
vendor rebates if "in the network"
Improve access to health care providers and treatments
Option to access health savings account to save for future medical bills with tax benefit
Disadvantages:
Costs (less than major medical plans but still substantial monthly premiums)
Applicants must qualify based on health examinations
In general, no maternity coverage
Requires making more choices in health care
Enlarge deductible quota and cheap to reduce
An additional advantage of optional health savings account:
Reduction of taxable income the amount recorded in HSA account
--- Use or store unused funds retained for future medical expenses
Saved funds are available for a wide range of health spending, keeping the tax benefit.