Health Insurance Guide - Health Insurance Brokers Section

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TITLE: What You Should Know To Save Money On Healthcare
AUTHOR: Irina
LENGTH: 737 words
FORMAT: 59 characters per line
CONTACT: irbonness@ureach.com
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What You Should Know To Save Money On Healthcare

By Irina

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The author grants permission to publish this article, in
its entirety, electronically or in print, as long as the
bylines are included. A courtesy copy of your publication
(or, at least, an e-mail notification) sent to
irbonness@ureach.com will be appreciated.
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This digest-analysis of several key aspects of the current
healthcare crisis in the U.S. may help the readers become
more educated consumers of healthcare services.

Why so expensive?

Roughly 15.1% of the U.S. GDP (gross domestic product) is
spent on healthcare that averages $5,198 per person per
year. The numbers are expected to reach 17.9% of the GDP
and $7,352 per person in 2005.

It wasn't always that way. In 1960, America's health bill
was only $141 per person and nearly everyone was able to
pay it out of pocket. What happened? Two key developments:

1) free market was abandoned in favor of government- or
employer-sponsored prepaid plans. Individuals no longer
paid the bills and NO LONGER CARED what things cost.

2) technology exploded. New and better diagnostic and
therapeutic techniques were developed. And everyone
demanded the best REGARDLESS OF COST.

Does Joe Average pay for you, or on the contrary?

In a given one-year time period, 50% of insured Americans
don't go to the doctor. Another 30% claim less than $500.
THE REMAINING 20% CONSUME 80% of the $1.1 trillion
annually. Only half of them indeed has serious chronic
conditions or naturally induced traumatic symptoms. The
remaining half is suffering LIFESTYLE DISORDERS like
overeating, drinking, using drugs, practicing poor sex
habits, not wearing helmets, seat belts, etc.

With health insurance you never get what you paid for. The
numbers above suggest that for most of us it's LESS much
more often than MORE.

Vanishing insurance

Not long ago getting a job meant getting a good health
benefits -- now there are 44 million uninsured Americans.
Not necessarily due to poverty, since over 25% of them make
more than $50,000 a year. The trend also reflects the
increasing number of self-employed and small businesses
without health benefits.

Even more Americans will be uninsured in the future as
increasing costs and patient rights laws force more
employers to drop or cut back on health benefits. Bottom
line -- those still insured will have to pay even more for
Joe's LIFESTYLE DISORDERS.

What to expect

- The average price of prescriptions is rising 4% per year;
- The average senior citizen takes 3.3 medications every
day;
- 60% Americans require corrective lenses;
- Over 33 million need hearing aids -- yet only 6% can
afford them;
- 19 million Americans use chiropractic services that are
not covered by insurance;
- Approximately 10 million suffer from substance abuse --
the cost of treating this illness is often not covered by
insurance;
- Another 5 million are suffering from mental illness that
again is often not covered.

The solution

Americans spend nearly $200 billion annually on OUT OF
POCKET healthcare expenses or nearly $1,000 per person per
year. Most of this is paid for at FULL RETAIL prices.

As a solution to rising costs consider a MEDICAL SAVINGS
ACCOUNT. This concept is like an IRA for healthcare.
Instead of sending ever-increasing premiums to a black hole
called insurance company, you buy a high deductible
"catastrophe" plan and pay for the everyday health
maintenance and routine medical procedures out of pocket
with the help of your tax-free medical savings account.

You can further minimize your out-of-pocket healthcare
expenses through various Healthcare Savings Programs. They
negotiate prices on behalf of their members and provide
access to the same networks of healthcare providers that
large insurance companies use. The service is available for
a modest monthly fee that is only a fraction of an
insurance premium for similar coverage. No long-term
commitment is required and -- to make these programs even
more appealing -- all pre-existing conditions are accepted.
For example and details see
http://www.careentree.com/310559

Summary

Healthcare today is 50(!) times more expensive than it used
to be in the 1960s and shows no sign of getting any
cheaper. There is no free lunch in America -- the only way
to save money on healthcare is to understand current trends
and take appropriate action.

(C) by Irina 2003.

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About the Author:
Irina helps people save money on healthcare and create
steady stream of residual income working from home
http://www.megaone.com/hbb/savemoney/
http://www.megaone.com/hbb/makemoney/
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About the Author

Irina helps people save money on healthcare and create
steady stream of residual income working from home
http://www.megaone.com/hbb/savemoney/