The HELP Scale- The Reality of What is Happening
We're All Somewhere On The HELP Scale
The Health Expense Liability Profile (HELP)
On average, an individual is going to spend approximately $400,000 during their lifetime on health care expenses. Some statistics indicate nearly 20% of a family budget will be spent on health care each year. While most were relatively "protected" in the past because of health insurance coverage or adequate cash- many individuals are now being forced to make some very difficult decisions to pay for health care expenses. Even with Medicare, some studies indicate you are going to need to have between $100,000 and $200,000 to have a 50% chance of being able to pay for health care expenses.
In the past, most were generally Protected if they had health insurance. Low copayments, never seeing a bill, and reasonable employee contributions generally protected most of big-time medical events. As more costs (through higher deductibles and contributions) are shifted to the indivudal, they are likely to start moving down the scale- and it can happen very fast. Adjusters are those that put off some major decisions when faced with an unexpected medical event. Budgeters have to make some tough decisions about savings, food, or even paying the mortgage if they are hit with medical costs. Forfeiters give up a lot- their retirement, their homes, and other things. Well over 50% of the bankruptcies in this country include some health care costs. Survivors have lost it all and are just trying to get by. The emergency room is frequently used and somebody else ends up paying for it.
With the costs of health care today, someone can move quickly down the HELP scale with a single medical event- even if you have insurance.
Individuals are going to need to be prepared. Increasing "employee contributions", deductibles, and other cost-sharing are going to put additional burden on individuals and their families. The issue isn't whether someone has health insurance or not any more- the issue is how are we going pay pay for health care expenses when we need them.
