Individuals and families are becoming more independent to pay for their healthcare. It is becoming more common to be your own business owner or contract employee, even if you do not have health insurance. A lot of people make the error of focusing on price rather than value when it comes to healthcare funding plans. This article will provide an overview of the options available for funding healthcare, with both the advantages and disadvantages of each strategy.
What Does Healthcare Cost?
It is crucial to understand the costs of healthcare in order to determine the best funding strategy for your healthcare needs. It is very common to make a grave error by buying based on price alone. Here are some examples of how much healthcare can cost. These will show you the importance of risk transfer and value in financing your healthcare.
Routine care: A relationship with your doctor can be a valuable asset. It can prevent more expensive illnesses and help you live a healthier life. Routine medical care is beneficial in preventing diabetes, cardiovascular disease and managing my sinus allergy. My last doctor visit, which included a blood test, cost $248. (price at the local pediatrician) = $160 annual physical = $500. The cost of a physical depends on the complexity. Northwest haulage companies
Rx Drug Prescription drugs account for approximately 10% of healthcare expenditures . Prescription drugs are often a significant part of the treatment of a chronic or major illness. These drugs are available at my local drugstore for the listed prices. OTC Claratin (equivalent to house brand) = $10 Crestor = $137.99/month Astelin = $115.99/month Topamax (generic equivalent = $566.99/month) is one example of a more costly medicine my wife uses regularly for chronic migraines.
Diagnostic Tests Diagnostic tests are important in diagnosing, managing and treating most diseases and they are a significant part of healthcare costs. My most recent blood test (three panels), = $152 Xrays = $100+ Mammogram = $150+ MRI = 1000+. A complex MRI can run into the thousands.
Emergency Care – ER Visit = $1000+ – This is based upon my experience – I have never had an ER visit with a bill less than $1000
Hospital Admission 30% of healthcare expenses are for in-patient hospitalization. A hospital stay lasts on average five days , with the exact cost of treatment highly dependent. Heart arrhythmia (irregular rhythm) – An example from one of my clients is $45,000, which includes an ER admission and three days in hospital
Major Illness Lymphoma – My brother under two years of treatment = $500,000+. It’s hard to know the exact amount, but I called to find out if my brother was close enough to his $1 million lifetime limit. I expected at least $500,000 in benefits to finish his treatment for cancer.
Chronic illness: A medical condition that lasts more than a year and requires continuous treatment. Asthma and diabetes are some examples. About half of Americans suffer from some type of chronic illness . Type 2 Diabetes – Average Annual Cost = $5949  Asthma: Average Annual Cost = $2192 
All of this adds up to a huge amount, and the average cost of Texas healthcare according to the Texas Department of Insurance for 2006 was $7110 per individual. This is $593 per person per month. Although this includes high-cost healthcare, it gives an idea of what healthcare costs. It is difficult to imagine how high healthcare costs if you have never had a family member, friend, or relative with a serious injury or illness. Funding healthcare is more than just covering the cost of routine care. To me, value means coping with the possibility of major illness or injury.
Funding Options for Healthcare
Cash – You can buy it as you need it, and pay the cost out-of-pocket. The main disadvantage of the “Cash”, or what I refer to as the “If We are Lucky Plan …”, is that there is no protection for major injuries or illnesses. Over 24% of Texans are uninsured, with a quarter of those uninsured choosing the “Cash” plan. This is about 6% of the total population.
- There is no monthly premium / fees
- Ask for a Cash Discount from Healthcare Providers
- All available
- There is no financial protection against the possibility of major illness or injury.
- Accessing healthcare services without insurance can be difficult; some providers may require payment in advance
- The entire bill for medical treatment is yours