Employee Benefit Health Care Costs Are Out of Control

Written by adminAugust 20, 2019
Health Insurance

It’s no secret that most Americans continue to struggle with rising healthcare costs. It’s not just the lower-class or those who have to pay for their own insurance, but also many with employer health care. As the healthcare costs keep rising, the more they’re expected to pay out-of-pocket and in co-pays.

The Commonwealth Fund (or TCF), has stated: “employer plan premium contributions and out-of-pocket costs, like those for prescription drugs, are eating up an increasing portion of household budgets.” This was discovered in a survey that found around 23.6 million people with employer coverage were paying higher premiums, higher out-of-pocket costs, or even both.

“It’s very arresting to me just to think about 24 million people with employer coverage who are living in households that spend a large share of their income on health care costs,” Sara Collins, vice president at the Commonwealth Fund. “When just thinking about … those human beings, that’s pretty striking … Some households spend almost nothing and some are spending thousands of dollars per year.”

The TCF Report

The TCF report gave a definition of what they considered a higher premium contribution.

They said, “if the total annual amount they pay for their employer plan premiums equals 10% of more of annual household income. Americans were considered to be paying high out-of-pocket costs if the total annual amount they pay out of pocket for medical expenditures not covered by their employer plan … is 10% or more of annual household income, or 5% or more for families earning less than 200% of the federal poverty level.”

This report unequivocally proves that people with employer health plans don’t necessarily have lower healthcare costs. This is a major shift that’s been happening over the past decade. Everything is getting more expensive. That includes health care costs and is burdening so many American families.

“What we’ve seen over the last few years is a steady growth in the percentage of people who are insured all year but have high out-of-pocket costs relative to their income and deductibles” to the point that “they’re considered underinsured,” Collins said. “The biggest growth in that trend is occurring among people who have employer plans.”

Growing Health Care Costs

The TCF report found that nearly 100% of the increasing out-of-pocket costs and premiums are driven specifically by the increase of healthcare costs. It’s dramatically outpacing people’s incomes which don’t seem to be moving upward fairly quickly.

“What’s really important for people to understand is that the principal driver of premium growth [and] the principal driver of out-of-pocket costs is the overall rate of growth in health care costs in the economy,’ Collins said.

U.S. healthcare costs grew 3.9% in 2017 and continues to grow.

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Our Financial Troubles Are Literally Making Us Sick

Written by adminAugust 10, 2018
Life Style

There’s no doubt that most Americans struggle with their personal finances. When it comes to managing money, most of us wouldn’t earn a passing grade due to financial troubles

The proof of that is in the record high debt that continues to rise well after the Great Recession has come and gone. Such a financial disaster should’ve taught us a fine lesson about debt. It doesn’t seem to have had much impact on the spending habits of most Americans.

It’s this lack of financial literacy that is 1) going to send us into another recession and 2) making us physically sick.

A workplace wellness company, Financial Fitness, recently released a study that found having increases chances of getting heart disease and diabetes. This is because stressors cause weight gain and unhealthy behaviors that lead to illness.

Financial Troubles Can Be Sneaky

Another study revealed that most Americans may not even realize they’re in trouble or where their sickness is coming from. Raddon, a financial service company, found that 44% of people surveyed believed they understood their finances well, but less than half of them passed a financial literacy test.

Only 6% of them scored a 90% or better. This is truly enlightening to the typical American mindset when it comes to money. We want those better things for our lives and for our family, but being in that much debt is putting untold stress on our minds…and our bodies.

Also: http://financialhelpers.com/4-things-every-parent-should-know-about-student-loans/

Of course, our mind has a powerful influence over the rest of us. According to the American Psychology Association, the number one stressor in most people’s lives are money issues. It must be difficult not knowing from year-to-year how the economy will do or if you’ll remain employed. Everything is getting more expensive while wages remain flatlined.

Still, that worry doesn’t seem to have any impact on many of us actually taking the time to properly educated ourselves on these issues. That stress caused by financial troubles is taking a toll.

“If stress becomes chronic, it can lead to significant health consequences. It’s important to remember that there are steps that people can take to manage their stress in healthy and productive ways, like exercising, spending time with friends and family, and finding ways to get involved in your community, including making your concerns known to policymakers,” says APA CEO Arthur Evans Jr.

Avoiding the Doctor Like the Plague

To make matters worse, Americans avoid going to the doctor…because they can’t afford their medical bills and/or insurance. 36% of Americans say they simply don’t have enough money to live a healthy lifestyle that includes going to a gym, eating healthy foods, and regular doctor visits.

This proves that if you want a healthy mind and body, one of the best ways to do it is by educating yourself on financial matters to help release that every day stress. Calm your mind. Have an emergency stash saved,  Save money. This will go a long way in improving your physical and mental well-being.

The problem is, 84% of Americans have never been involved in any type of financial program to improve their knowledge. 51% say learning about money and investment is on a ‘need to know’ basis. They’ll learn it when they’re ready to apply the knowledge and start investing.

Another issue is most Americans sort of feel invincible, despite the stress that’s eating away at their peace-of-mind. We did a story recently about how most millennials believe they will be a millionaire at some point in their lives. Financial troubles are keeping them from reaching that goal. They aren’t saving for retirement, either.

Realistically, these issues are a recipe for disaster.

David Irwin, the president of Raddon, believes banks could be the key to helping Americans figure out a better way for them to invest.

“Financial institutions have a powerful role to play in developing financial literacy today. A majority of customers who participate in a financial education program find value. Providing financial education can help institutions to stand out and build depth with their customers. Closing the gap between customer perceptions of their own financial literacy and reality will help them develop the skills to build financial health.”

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The Importance of Living Wills

Written by adminJanuary 19, 2018
Insurance

The one thing we can all agree on about life is how unpredictable it is.  And one day, it will all end.  As we move towards our undeniable fate, there may be plenty of ways you’ve begun to prepare, such as drawing up your last will and testament, having enough life insurance to cover any last expenses, and making sure all your debts are paid.   

Thinking about our passing is always a difficult subject, but it’s something we must all do as we come to grips about our mortality.  There’s still one major area of concern we often gloss over when it comes to our health during the final days, weeks, and even months of our life.  While we all know the importance of our last will and testament, have you taken the time to consider a living will?

There might come a time in your life where you find yourself in an incapacitated state.  It doesn’t necessarily have to happen towards the end of your life either, as a living will deals with your care while you’re still alive.  For example, if you’ve been in a severe car accident and find yourself in a coma.  How would you like your family to proceed?

 

A Difficult Choice

This can be a truly heart-wrenching decision for any family member to have to make, especially if they’re unsure of your wishes and how you desire the situation to be handled.  Should they take you off life support?  Keep you going a while longer?  And not to forget the whole Terri Schiavo case where family members had very different opinions on what should happen next.

Everyone from lawyers and estate planners to the majority medical professionals have advocated for the need for a living will.  But it’s important not to confuse a living will with your typical will, which deals with how you’re going to divide your property amongst family and friends.  A living will is strictly about making an advance directive while you’re still alive.

Despite the insistence by top professionals to obtain a living will, only a small number of people have made sure they have one.  Hiring a lawyer (if you haven’t already) can be useful if you want to get advice on how to plan your living will.  While it’s recommended to hire one, you can set it up on your own without one by obtaining the forms online.  Many hospitals also have the correct forms to fill out.   

It’s also important to discuss with your loved ones your plan in the event of an emergency.  It can go a long way to helping them know how to handle a potential tragedy.  You can also assign someone as your power of attorney and let everyone know who you chose to make decisions on your behalf.   

And finally, file your living will with your doctor’s office, as well as with your attorney, and your power of attorney.  The whole process only requires a few steps, including getting your living will notarized.  Once you have it taken care of, you will be prepared.  Whatever happens, you and your family will be taken care of.

 

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