A recently released report has highlighted the rising financial burden on Utah families due to rising health care costs. Over 25% Utah residents will end up spending more than 10% of their monthly pretax income on health care needs alone in 2009, according to the report from Families USA. And these figures include only those who already have health insurance cover.
Titled ‘Utah Health Policy Project’ cites the actual expenditures as proof to the contention that health insurance is seriously impacting families’ monthly budgets.
Jessica Kendrick, project’s community engagement director cautions in a news release, “There is a serious need for comprehensive national health system reforms to preempt the situation where the families will struggle to meet expenses related to mortgage, groceries, and other basic necessities.”
The report concluded that a single Utah family spends way beyond 10% of their monthly pretax budget on health care.
Citing his own example, Steven Rosenberg said, “As a family, we end up spending anywhere between $12,000-$15,000 annually on health care.”
The report also found that the health care costs get dearer in Utah faster than any other State in the country. The costs have increased by 4.3% in the State since 2000, faster than anywhere else in the country.
Wednesday, May 20, 2009
Monday, May 18, 2009
My Take on Health Insurance
I enjoy good health, and sickness is an exception in my case. At best, I suffer from old age pangs, like stiff and aching joints, hearing and vision depletion. Though I regularly take those prescribed gendered tests, yet I’m of the firm view that as long as I’m not feeling it, I don’t need to visit a doctor!
Thus, it’s been years that I visited my primary care provider. I’m recently retired and thus, ineligible for Medicare. That’s the reason why I take special interest in different plans offered by the health insurance companies. If you are employed, the subsidy from employer takes care of most of the insurance expenditure, but this is not the case when you are retired. My worries get magnified on learning that the cost for insurance under COBRA (the Consolidated Omnibus Budget Reconciliation Act) will run into several thousands of dollars. That’s the reason of my being skeptical about the whole issue of getting insured.
I’m always reminded of the words by Harry Callahan: “You’ve got to ask yourself one question: ‘Do I feel lucky?’” I found out that the best way to answer this question is by going in for routine physical examination to rule out any major issues with my health. Thereafter, the doctor’s visit only end up seeding doubts in my mind about my health in particular, and health insurance in America in general.
Though my doctor has all the qualities that a “good doctor” must have, i.e., good medical knowledge, advanced qualifications, good mannerisms, and above all, a caring attitude towards all his patients. However, my last visit didn’t earn him any brownie points, as I had to contend with an absurd questionnaire that I had to fill while waiting in the examining room. One question asking for reasons for your visit had an option “Need a hug”! Now, that’s something you don’t expect from a doctor with above qualities.
Now to some serious stats! US Health and Human Services will tell you that the average cost of a visit to a primary care physician in 2007 was $100, and with inflationary times staring at us, I’m sure the cost has increased considerably since then. Two questions I’d like to propose to the readers: a) Are we so out of touch with our Selves that we need a doctor to tell us that we don’t need a doctor? b) Do insurers really cover the cost of visits to doctors for the dispensation of hugs?
I’m sure most people won’t visit their doctors for these reasons. The most important factor contributing to our health insurance mania is a publicity-induced thought-process that compels you to believe that your body is prone to the most unheard of diseases and unforeseen dangers, and requires a constant intake of vitamin supplements, whole body X-Ray, needless surgeries, and superficial fine-tuning.
It seems that the holistic approach - which assumes that not feeling sick does not necessarily mean that one is well, but is merely somewhere between well and sick — encourages a distortion of perception. A wait-and-watch policy regarding minor health issues is a passé. I still remember how my mother used to caress my forehead with her gentle hands to comfort me, and assured that I’ll be well soon; and it always worked. She used to kiss a boo-boo to “make it all better,” and surely, that kiss had magical healing properties. She used to take me to the doctor only for vaccinations and persistent or serious symptoms, and certainly, not for sneezing, rashes and minor stomach ache.
In conclusion, I’m remembered of profound words by a scholar. In “The Lives of a Cell”, the late Dr. Lewis Thomas, erstwhile president of Sloan-Kettering Cancer Center and dean of the medical schools at New York University and Yale, wrote, “The great secret, known to internists and learned very early in marriage by their wives, but still hidden from the general public, is that most things get better by themselves. Most things, in fact, are better by morning.”
Thus, it’s been years that I visited my primary care provider. I’m recently retired and thus, ineligible for Medicare. That’s the reason why I take special interest in different plans offered by the health insurance companies. If you are employed, the subsidy from employer takes care of most of the insurance expenditure, but this is not the case when you are retired. My worries get magnified on learning that the cost for insurance under COBRA (the Consolidated Omnibus Budget Reconciliation Act) will run into several thousands of dollars. That’s the reason of my being skeptical about the whole issue of getting insured.
I’m always reminded of the words by Harry Callahan: “You’ve got to ask yourself one question: ‘Do I feel lucky?’” I found out that the best way to answer this question is by going in for routine physical examination to rule out any major issues with my health. Thereafter, the doctor’s visit only end up seeding doubts in my mind about my health in particular, and health insurance in America in general.
Though my doctor has all the qualities that a “good doctor” must have, i.e., good medical knowledge, advanced qualifications, good mannerisms, and above all, a caring attitude towards all his patients. However, my last visit didn’t earn him any brownie points, as I had to contend with an absurd questionnaire that I had to fill while waiting in the examining room. One question asking for reasons for your visit had an option “Need a hug”! Now, that’s something you don’t expect from a doctor with above qualities.
Now to some serious stats! US Health and Human Services will tell you that the average cost of a visit to a primary care physician in 2007 was $100, and with inflationary times staring at us, I’m sure the cost has increased considerably since then. Two questions I’d like to propose to the readers: a) Are we so out of touch with our Selves that we need a doctor to tell us that we don’t need a doctor? b) Do insurers really cover the cost of visits to doctors for the dispensation of hugs?
I’m sure most people won’t visit their doctors for these reasons. The most important factor contributing to our health insurance mania is a publicity-induced thought-process that compels you to believe that your body is prone to the most unheard of diseases and unforeseen dangers, and requires a constant intake of vitamin supplements, whole body X-Ray, needless surgeries, and superficial fine-tuning.
It seems that the holistic approach - which assumes that not feeling sick does not necessarily mean that one is well, but is merely somewhere between well and sick — encourages a distortion of perception. A wait-and-watch policy regarding minor health issues is a passé. I still remember how my mother used to caress my forehead with her gentle hands to comfort me, and assured that I’ll be well soon; and it always worked. She used to kiss a boo-boo to “make it all better,” and surely, that kiss had magical healing properties. She used to take me to the doctor only for vaccinations and persistent or serious symptoms, and certainly, not for sneezing, rashes and minor stomach ache.
In conclusion, I’m remembered of profound words by a scholar. In “The Lives of a Cell”, the late Dr. Lewis Thomas, erstwhile president of Sloan-Kettering Cancer Center and dean of the medical schools at New York University and Yale, wrote, “The great secret, known to internists and learned very early in marriage by their wives, but still hidden from the general public, is that most things get better by themselves. Most things, in fact, are better by morning.”
Heath insurance proving tough nut to crack for small businesses
The rising costs of providing health insurance are pinching everyone, but small businesses are finding it particularly hard to meet the exorbitant costs in the midst of declining profits.
“We are very concerned at the situation,” said Reese McFaddin, president and owner of Workplace Benefits on Daniel Island. “It’s been an uphill task for us to maintain status quo.”
With daily layoffs, furloughs, and pay cuts ruling the roost, companies are seriously harboring second thoughts about providing health insurance to the employees, according to Paul Thomas, area manager for the Small Business Administration office in Charleston.
“The managers are looking at their options to cut costs. There are fixed costs and variable ones. Though you can do little with the fixed costs, but variable costs can be reduced. And health insurance forms a major chunk of variable cost of any company,” Thomas said.
Recession has had the most profound impact on small businesses, with very few options available to cut costs and stiffen their spending. Moreover, small businesses do not have any group purchasing power, as do some larger corporations.
“Companies have finally realized the need to save money, and are trying to explore different means and strategies,” said Reese McFaddin, president and owner of Workplace Benefits.
The percentage of firms offering health benefits increases with the increase in employee size, according to a 2008 annual study conduced by the Kaiser Family Foundation. About 50% of the firms with up to 9 workers offered coverage, as compared to 78% of firms with 10-24 workers and 90% of firms with 25-49 workers, the study concluded.
This is the direct fallout of the fact that health care premiums for small businesses are an average of 18% higher than those of large businesses, according to the National Federation of Independent Business.
“Plenty of companies simply can’t afford it, and plenty of small businesses simply don’t,” Thomas said. He recently talked to an owner of a company that laid off 47 people, and is now struggling to provide health care benefits to the rest of the 16 employees.
The shortfall in numbers is also forcing significant changes in many small businesses in and around the Lowcountry, including changing carriers, increasing deductibles, dropping group policies, etc.
The Kaiser Family Foundation study found out that several companies are already looking to transfer more costs to employees. Even among the companies that offer benefits, 40% favor increase in the employee contribution towards premiums, and 41% favor increase of deductible.
McFaddin, working with companies to find health insurance policies, has witnessed first hand a recent shift in employer and employee attitudes towards health insurance due to the shaky economy.
“The need to save money has compelled the companies to have a re-look at their options and strategies,” said McFaddin.
“Companies need to save money, and now they’re willing to listen to different strategies,” McFaddin said. A recent trend is for companies to switch to high-deductible plans, she said.
For instance, a deductible increase between $1,000-$5,000 will keep premiums down for the employer and employees. This will compel the employees to set up health savings accounts or health reimbursement accounts, which are gaining popularity, according to McFaddin.
With HSAs, the employees can easily put up to the deductible amount into the savings account. The unused money is carried forward until the age of 65. This also attracts tax benefits, as the deduction is above-the-line, thus, reducing the employee’s taxable income.
“Things were different 3-4 years ago, when people used to flaunt their high-deductible plan,” McFaddin informs. “Today, if we do that for a client, it’s viewed as an expression of thanks to keep the premiums lower.”
Family Services, a nonprofit organization in Charleston involved in offering programs and counseling to families and individuals, offers a traditional and a high-deductible health savings account option for its employees.
It has witnessed tremendous growth in its high-deductible HSA plan over the last few years. Although the costs of providing the plans tend to differ each year, it generally costs less if you opt for a high deductible one. Stephanie Masula, human resources spokeswoman for Family Services, informs, “This year, the cost of traditional plan increased by $70 and $28 for the high-deductible plan.”
Induced savings means there is a high demand for high-deductible plans throughout the country and small businesses top the list. According to the Kaiser Foundation study, during the past two years, there has been an increase from 16% to 35% in the number of workers in small firms with a high-deductible plan.
The study further claimed that around 21% of the companies not yet offering it will be making the shift and offer a high-deductible plan during the next year.
However, switching to a high-deductible plan is not the Hobson’s Choice at this stage.
McFaddin chips in, “Clients need to show some flexibility while buying and some of the changes to consider include agent, carrier or plan.”
Masula, who recommends receiving 3 bids each year from different agents, provides another point worth exploring. As an example, Masula cited Family Services that saved $30,000 when it changed its carriers.
“We are very concerned at the situation,” said Reese McFaddin, president and owner of Workplace Benefits on Daniel Island. “It’s been an uphill task for us to maintain status quo.”
With daily layoffs, furloughs, and pay cuts ruling the roost, companies are seriously harboring second thoughts about providing health insurance to the employees, according to Paul Thomas, area manager for the Small Business Administration office in Charleston.
“The managers are looking at their options to cut costs. There are fixed costs and variable ones. Though you can do little with the fixed costs, but variable costs can be reduced. And health insurance forms a major chunk of variable cost of any company,” Thomas said.
Recession has had the most profound impact on small businesses, with very few options available to cut costs and stiffen their spending. Moreover, small businesses do not have any group purchasing power, as do some larger corporations.
“Companies have finally realized the need to save money, and are trying to explore different means and strategies,” said Reese McFaddin, president and owner of Workplace Benefits.
The percentage of firms offering health benefits increases with the increase in employee size, according to a 2008 annual study conduced by the Kaiser Family Foundation. About 50% of the firms with up to 9 workers offered coverage, as compared to 78% of firms with 10-24 workers and 90% of firms with 25-49 workers, the study concluded.
This is the direct fallout of the fact that health care premiums for small businesses are an average of 18% higher than those of large businesses, according to the National Federation of Independent Business.
“Plenty of companies simply can’t afford it, and plenty of small businesses simply don’t,” Thomas said. He recently talked to an owner of a company that laid off 47 people, and is now struggling to provide health care benefits to the rest of the 16 employees.
The shortfall in numbers is also forcing significant changes in many small businesses in and around the Lowcountry, including changing carriers, increasing deductibles, dropping group policies, etc.
The Kaiser Family Foundation study found out that several companies are already looking to transfer more costs to employees. Even among the companies that offer benefits, 40% favor increase in the employee contribution towards premiums, and 41% favor increase of deductible.
McFaddin, working with companies to find health insurance policies, has witnessed first hand a recent shift in employer and employee attitudes towards health insurance due to the shaky economy.
“The need to save money has compelled the companies to have a re-look at their options and strategies,” said McFaddin.
“Companies need to save money, and now they’re willing to listen to different strategies,” McFaddin said. A recent trend is for companies to switch to high-deductible plans, she said.
For instance, a deductible increase between $1,000-$5,000 will keep premiums down for the employer and employees. This will compel the employees to set up health savings accounts or health reimbursement accounts, which are gaining popularity, according to McFaddin.
With HSAs, the employees can easily put up to the deductible amount into the savings account. The unused money is carried forward until the age of 65. This also attracts tax benefits, as the deduction is above-the-line, thus, reducing the employee’s taxable income.
“Things were different 3-4 years ago, when people used to flaunt their high-deductible plan,” McFaddin informs. “Today, if we do that for a client, it’s viewed as an expression of thanks to keep the premiums lower.”
Family Services, a nonprofit organization in Charleston involved in offering programs and counseling to families and individuals, offers a traditional and a high-deductible health savings account option for its employees.
It has witnessed tremendous growth in its high-deductible HSA plan over the last few years. Although the costs of providing the plans tend to differ each year, it generally costs less if you opt for a high deductible one. Stephanie Masula, human resources spokeswoman for Family Services, informs, “This year, the cost of traditional plan increased by $70 and $28 for the high-deductible plan.”
Induced savings means there is a high demand for high-deductible plans throughout the country and small businesses top the list. According to the Kaiser Foundation study, during the past two years, there has been an increase from 16% to 35% in the number of workers in small firms with a high-deductible plan.
The study further claimed that around 21% of the companies not yet offering it will be making the shift and offer a high-deductible plan during the next year.
However, switching to a high-deductible plan is not the Hobson’s Choice at this stage.
McFaddin chips in, “Clients need to show some flexibility while buying and some of the changes to consider include agent, carrier or plan.”
Masula, who recommends receiving 3 bids each year from different agents, provides another point worth exploring. As an example, Masula cited Family Services that saved $30,000 when it changed its carriers.
High healthcare costs a headache for the insured: Study
Massachusetts’ landmark health insurance overhaul in 2006 notwithstanding, the rising healthcare costs are eating the monthly income of the insured by more than 10%, according a study from leading nonprofit organization dedicated to the cause of affordable healthcare, Families USA.
According to the study, more than 1 million Massachusetts residents will end up spending more than 10% of their monthly pretax income on healthcare this year. Compared to 2000 statistics, the number of people under healthcare has risen from 46% to 94%.
Ran Pollack, Executive Director of Families USA, elaborating on the issue, said, “It’s not just the uninsured that are suffering from the pangs of high healthcare costs. Even the insured ones are finding it harder to find a way to meet the rising insurance costs, as the high premiums are wrecking havoc to families’ monthly budget.”
The startling revelation of the study comes in the form of a statement to the effect that a considerable number of residents will end up spending a lot more than 10% of their income on healthcare costs. For instance, the researchers found that around 300,000 Bay State residents constitute families that are likely to spend over a quarter of their monthly pretax income on healthcare. “And over 90% of the Bay State residents are under insurance cover”, said Pollack.
The high percentage of families in Massachusetts under insurance cover can be attributed to a unique 2006 decision of the government to make health insurance compulsory, or pay a tax penalty. This is the reason why Massachusetts has highest percentage of insured in the USA. However, the ascending monthly premiums coupled with descending coverage for services and medications has led the individuals to harbor second thoughts about the whole need to compulsorily go for health insurance. This is evident from the mounting calls by the residents to the consumer help lines of the insurance companies.
“In the recent months, we are witnessing a surge in the number of calls from hapless people trying desperately to pay their medical bills despite exhausting all their savings and running into debts,” said Carol Pryor, policy director at Access Project, a Massachusetts based nonprofit catering to the consumers who want to negotiate payment plans.
The blame rests with the increasing use of prescriptions and hospital care, pricey new medical screenings, and an insurance market with few consumer protections, the study concluded.
Efforts are afoot to arrest the situation at all levels and curb the rising health costs that are growing faster than the national average. A State Commission is already trying to dish out strategies that can help in slowing down the rate rising healthcare costs. Anya Rader Wallack, co-chairperson of the commission’s cost-containment committee, offers the solution, “The solution lies in understanding the way we pay for healthcare, addressing the negatives, reducing the inefficiencies in the system, and finally, redesigning the way healthcare is delivered.”
Elaborating on the plans of the committee, Wallack said, “We intend to have a report ready by September that will lay out multiple strategies in order to considerably reduce the costs of healthcare.”
The national figures indicate 64 million people under the age of 65 constitute families that spend more than 10% of their pretax monthly income on healthcare, the report concluded. Out of these, around 19 million are those that spend more than 25% of their pretax monthly income on health insurance.
According to the study, more than 1 million Massachusetts residents will end up spending more than 10% of their monthly pretax income on healthcare this year. Compared to 2000 statistics, the number of people under healthcare has risen from 46% to 94%.
Ran Pollack, Executive Director of Families USA, elaborating on the issue, said, “It’s not just the uninsured that are suffering from the pangs of high healthcare costs. Even the insured ones are finding it harder to find a way to meet the rising insurance costs, as the high premiums are wrecking havoc to families’ monthly budget.”
The startling revelation of the study comes in the form of a statement to the effect that a considerable number of residents will end up spending a lot more than 10% of their income on healthcare costs. For instance, the researchers found that around 300,000 Bay State residents constitute families that are likely to spend over a quarter of their monthly pretax income on healthcare. “And over 90% of the Bay State residents are under insurance cover”, said Pollack.
The high percentage of families in Massachusetts under insurance cover can be attributed to a unique 2006 decision of the government to make health insurance compulsory, or pay a tax penalty. This is the reason why Massachusetts has highest percentage of insured in the USA. However, the ascending monthly premiums coupled with descending coverage for services and medications has led the individuals to harbor second thoughts about the whole need to compulsorily go for health insurance. This is evident from the mounting calls by the residents to the consumer help lines of the insurance companies.
“In the recent months, we are witnessing a surge in the number of calls from hapless people trying desperately to pay their medical bills despite exhausting all their savings and running into debts,” said Carol Pryor, policy director at Access Project, a Massachusetts based nonprofit catering to the consumers who want to negotiate payment plans.
The blame rests with the increasing use of prescriptions and hospital care, pricey new medical screenings, and an insurance market with few consumer protections, the study concluded.
Efforts are afoot to arrest the situation at all levels and curb the rising health costs that are growing faster than the national average. A State Commission is already trying to dish out strategies that can help in slowing down the rate rising healthcare costs. Anya Rader Wallack, co-chairperson of the commission’s cost-containment committee, offers the solution, “The solution lies in understanding the way we pay for healthcare, addressing the negatives, reducing the inefficiencies in the system, and finally, redesigning the way healthcare is delivered.”
Elaborating on the plans of the committee, Wallack said, “We intend to have a report ready by September that will lay out multiple strategies in order to considerably reduce the costs of healthcare.”
The national figures indicate 64 million people under the age of 65 constitute families that spend more than 10% of their pretax monthly income on healthcare, the report concluded. Out of these, around 19 million are those that spend more than 25% of their pretax monthly income on health insurance.
Thursday, May 7, 2009
Emergency Road Side Auto Insurance that Assists the Customer
The days of villains attacking the horse and carriages as they traveled on quiet dark roads are becoming more and more distant. However, the need for road safety has not left. Some of the most scaring stories are of families being struck by another vehicle on the side of the road as they waited for assistance.
One such story that hit the news was of a family that had run out of gas and was stuck on the side of the road at night. They called for help from family. The brother who had brought them gas was putting gas in the car when a drunk driver veered off the highway and hit the car instantly killing the young man. These stories cause people to be more aware of the area that they pull over in. As much as possible you should pull over in a well light area and as far off the road as possible. You should avoid stopping just after a blind turn. All of these issues can provide hazards on the roads that lead to injury or death. Carrying a road side assistance policy can be helpful as they are trained in safety as well as timeliness. The less time the car and family are stranded the less life threatening situations can occur. Great car insurance with customer service is virtually unheard of. Check out AAA Auto Insurance if you are looking for roadside assistance coverage and car, motorcycle or mobile home coverage. There are various companies that offer road side emergency service. AAA Insurance is a non for profit organization that offers a yearly insurance policy at a reasonable price. This insurance offers a policy that will enable someone to aide you on the roadside or in a parking lot when you are broken down or out of gas is a needed policy.
Many women who travel miles daily do so without a road side assistance plan. Women especially should consider the safety that is offered in such as plan. A flat tire can be changed in about a half hour by a professional, properly identified person. This is far safer than flagging down help from a stranger. The cost of the flat tire being changed is reasonably low and well worth the peace of mind that it brings to the women and to the men who love them.
I have been in situations where I have been concerned for my safety. One such time a drugged up man who smelled of urine assisted me with jumping my dead battery. I should have been able to wave him away from the inside of my locked vehicle assuring him that AAA or another road side assisting company was on the way. Sometimes people do not have the adequate emergency coverage because they are unaware of the dangers that lurk and wait in seemingly normal emergencies. Young college girls have vanished from sides of roads where they waited for help. In the modern times of forensic science and numerous TV shows on missing persons and reopened mystery cases, lets use the coverage that can save our lives and keep our minds at peace.
One such story that hit the news was of a family that had run out of gas and was stuck on the side of the road at night. They called for help from family. The brother who had brought them gas was putting gas in the car when a drunk driver veered off the highway and hit the car instantly killing the young man. These stories cause people to be more aware of the area that they pull over in. As much as possible you should pull over in a well light area and as far off the road as possible. You should avoid stopping just after a blind turn. All of these issues can provide hazards on the roads that lead to injury or death. Carrying a road side assistance policy can be helpful as they are trained in safety as well as timeliness. The less time the car and family are stranded the less life threatening situations can occur. Great car insurance with customer service is virtually unheard of. Check out AAA Auto Insurance if you are looking for roadside assistance coverage and car, motorcycle or mobile home coverage. There are various companies that offer road side emergency service. AAA Insurance is a non for profit organization that offers a yearly insurance policy at a reasonable price. This insurance offers a policy that will enable someone to aide you on the roadside or in a parking lot when you are broken down or out of gas is a needed policy.
Many women who travel miles daily do so without a road side assistance plan. Women especially should consider the safety that is offered in such as plan. A flat tire can be changed in about a half hour by a professional, properly identified person. This is far safer than flagging down help from a stranger. The cost of the flat tire being changed is reasonably low and well worth the peace of mind that it brings to the women and to the men who love them.
I have been in situations where I have been concerned for my safety. One such time a drugged up man who smelled of urine assisted me with jumping my dead battery. I should have been able to wave him away from the inside of my locked vehicle assuring him that AAA or another road side assisting company was on the way. Sometimes people do not have the adequate emergency coverage because they are unaware of the dangers that lurk and wait in seemingly normal emergencies. Young college girls have vanished from sides of roads where they waited for help. In the modern times of forensic science and numerous TV shows on missing persons and reopened mystery cases, lets use the coverage that can save our lives and keep our minds at peace.
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