Health is life. Without it, we won’t be able to function properly in society and experience life to the fullest. However, sometimes health does not come cheap. This is precisely why insurance was made, but ironically insurance has become more expensive as the years have gone by. There are several things you ought to consider when choosing the right health insurance. Things like the type of plan, premiums, coverage, size of family, your underlying condition, and premiums. All in all, things can get expensive and dicey, which is why people have started looking for alternatives to health insurance.
In the coming paragraphs, we will look at healthcare costs, the reasons for its increase in recent years, and some alternatives to healthcare.
Average healthcare costs
The average healthcare costs differ according to individual, age, pre-existing conditions, state, gender, marital status, and healthcare providers. For instance, the average healthcare cost for a family of four is around $21,500. For someone in their late 20s, it is from $700- $250. States like New Hampshire offer cheap healthcare averaging $273 for individuals, while Wyoming can get as high as $648.
However, generally, per month, individuals pay around $456 while families pay $1,152
Why do healthcare costs keep rising?
Everyone is feeling the rising cost of healthcare right now in the country. According to CMS, by 2027, health care will rise to $6.0 trillion from $4.3 trillion estimated in 2021. Well, to understand this increase, we have to look at certain factors.
1. Aging Population: A lot of boomers are reaching retirement age. Thus, the 65+ age population keeps growing, and by 2030, 20% of the entire US will be older than 65. This means more chronic conditions and degenerative diseases, which will strongly impact Medicare. Medicare caters specifically to older adults and is a publicly funded venture. So, more cost for the entire country.
2. Drug prices are rising: The spending on prescription drugs keeps growing yearly by approximately 6.1%. This is because of the more specialized drugs and experimental medications on the market. This, coupled with the rise in chronic conditions, drives the cost of drugs higher. Also, most big PHARMA inflates drug prices as they want.
Staying healthy and eating healthy is always the best option
With the rise in drug prices and the general cost of healthcare, it’s only wise that we become more conscious of what we eat. Food is the best medicine, and prevention is way better than cure. To do this, try to eat more organic food, and take fruits rather than canned drinks. Also, the importance of exercise cannot be overemphasized. Exercise reduces your chances of getting hypertension, heart disease, stroke, and some cancers.
As a rule of thumb, try to do at least 30 minutes of exercise every day. Apart from the physical benefits, it also has mental benefits. It keeps you energized, you have more energy for work, and you generally feel better.
Subscription-based healthcare
Subscription-based healthcare has begun picking up steam in the health space. Technology is making things easier and more accessible. Think of subscription health care like subscribing to a gym membership or a streaming service. You pay a monthly fee and get concierge healthcare. With this, you have unlimited access to various healthcare professionals, from physiotherapists to medical doctors and imaging specialists.
This healthcare model is not health insurance; instead, it’s an alternative insurance solution. This model is more flexible, affordable, and takes a proactive approach to healthcare. Subscription-based healthcare is more about overall wellness.
Short-term health insurance
Just as the name implies, this health insurance gives you temporary healthcare coverage when you do not have stable health insurance. What you can cover depends on your plan, but generally, you get coverage for emergencies, urgent care, and doctor visits. You also get prescription coverage sometimes, but this will depend on the need for the drug.
The main benefit is that it gives you a leg to stand on when you do not have any insurance, and you are free to cancel anytime you want to. Plus, this insurance can be tailored to your own needs. However, it has a higher deductible and does not cover pre-existing conditions. The important thing to note here is that this is meant to only fill in the gaps when your insurance falls off.
Medi-Share and health-sharing programs
Health sharing programs like Medi-Share are usually faith-based health coverage plans. It is important to note that even though the coverage acts like insurance, it is not health insurance. This works because each member pays monthly fees, which are then pooled to pay for other members’ medical bills.
Health sharing programs are not bound legally to pay for certain things. This is because they do not follow the requirements of the Affordable Heath Care act. Thus, they will not cover certain things like birth control, preventive care, and pre-existing conditions. However, they are cheaper than conventional health insurance and can provide spiritual support for people that want such. Before making a choice, take some time to read Medishare health insurance reviews.
Cash only doctors
Cash-only doctors are health professionals that do not accept anything other than cash. They do not accept alternative health solutions like health sharing plans or even normal health insurance. What they do instead is take a monthly fee for membership. This can range from $50 to $150 and will cover all visits within the month.
The main benefit of this service is that you get more one-on-one time with your doctor since they do not work for an insurance company. The pricing is more transparent, and the service is generally better and more flexible. The main issue is that you may incur more costs if you use it with your normal health insurance, and it does not work for more severe health cases.
High-deductible health plans
High-deductible health plans have higher deductibles than normal health insurance plans but lower premiums. The deductibles always fall in the four figures. For families, it is a minimum of $2,800, and for individuals, it is a minimum of $1,400. One thing that stands out about this plan is that it covers preventive care.
The main idea of high-deductible health plans is that you pay way less monthly fees, but your deductibles (the amount you must pay out of pocket) are lower. Thus, if you are a generally healthy person with no chronic disease or pre-existing condition, you will benefit from this.
Health Savings Account
This is a tax-advantaged account that people who have high-deductible health plans use to save money for medical expenses. What happens here is that individuals or their employers pay a certain amount to the account capped at a limit. Then the saved money is used for medical expenditures such as dental, vision care, and medical.
To qualify for this, you need a high-deductible health plan, zero coverage by Medicare, and have no other health coverage.
Fixed indemnity insurance
This type of insurance pays you a predetermined amount for your medical expenses over a particular period. This amount will be determined regardless of how much your medical expenses cost. Basically, there is a set amount you get, either calculated using time or the type of medical service you got.
Fixed indemnity is cheaper than conventional health insurance, plus it offers more flexible coverage. However, there is no prescription drug coverage, and if you have a major medical emergency, you can be left with much debt.
Conclusion
There are several alternatives to health insurance, such as health sharing programs, fixed indemnity insurance, and subscription-based healthcare. And as health costs are rising, you need to look to these alternative ways to survive but be sure to consider the pros and cons of any alternative health solutions you choose.
