The current Senate proposal on creating Affordable Health care has been made public. The proposal fails to address the question of affordability for the average American wage earner, particularly those earning $100,000.
Affordable Health: What is the cost
$100,000 seems like a large income and most households would gladly receive it. But consider this, the cost of a family policy, on the individual market, will be about $20,000 in 2018. A household earning $100,000 will not be eligible for subsidies. Out of pocket expenses are also increasing. Deductibles, in 2018, will average $2,500 per person. Therefore, a family of 4 face the possibility of paying up to $10,000 in the event that they need healthcare.
Continuing with this example, after taxes, a family of 4 will pay close to 35% of their income toward “Affordable Health” care. Additional expenses, such as the mortgage or rent, utilities, car payments and/or food need to be budgeted. Almost everything else, such as college funds, entertainment, vacations, retirement savings et.al. become discretionary. This is not sustainable and will not achieve the desired goal of “Affordable Health” care.
Affordable Health: Implications on providers
There is another sad reality in this scenario. A recent study by the Center for Disease Control (CDC) revealed that insurance companies pay out less than 10% of the money they take in to cover the cost of care. Everything else stays with the insurance company. Imagine paying $30,000 for health care and only $3,000 of your money comes back to you in needed health services. Would you pay $30.00 for a dinner and be happy with receiving $3.00 in food?
We must pay attention to the insurance companies and limit their administrative costs. According to Minda Wilson, author of the book Urgent Care, cutting the salary of senior level management in the three largest insurance companies would create significant reduction in policy premiums.
Public Policy Failures
Our politicians simply fail to grasp the significance of the issue. The Affordable Care Act helped create this scenario. The Senate proposal does little or nothing to address the problem.
Personal Implications: Disease and Toxins
We need to educate ourselves on the problems of healthcare costs and continually bring these issues up in the legislative process. However, we can’t wait for Washington to fix our personal situations. The current situation simply reveals, to a greater degree than ever before, the importance of taking care of ourselves. The adage, “We are what we absorb” has never been more true. As the chart demonstrates, the rates of Autism, Breast Cancer, Reproductive Problems, Diabetes and Obesity have been on the rise since 1970. And, the rise corresponds to the increase in the use of man-made chemicals and toxins in foods and products that we use everyday.
Personal Implications: Finances and health care costs
The number one cause of bankruptcies in the United States is unpaid medical bills. The current Senate proposal fails to alleviate the problem. Doesn’t it make sense that we must look for ways to diversify our income as well? There are many alternatives to increasing your income. One option is to start a HOME Based, health and wellness business. Click the link and see how you can detoxify your home, health and income with this unique company. You will be glad you did.