Now more than ever there is pressure on the healthcare industry to provide adequate care for all. In terms of getting the most out of your money that’s simply not possible in the U.S. A good portion of people in the country are still without health insurance and those that do still find it hard to cover the cost of medical insurance. The Covid-19 virus has shown why it is important to cover the cost of your medical needs and for there to be a change in the system. This change is needed to make healthcare affordable for all. However, there are reasons why it’s currently as expensive as it is. These issues have to be addressed properly and fairly and as such takes time to break down and unpack.
Why Is Medical Cost Expensive?
Medical costs can really be an issue for most families. If a medical emergency were to happen many will scramble to find the money to take off the cost that insurance doesn’t cover and for those with no insurance the situation can quickly become difficult. This has caused a lot of people to make choices they’d rather not.
1. Administrative Cost – administrative cost amounts to 8% of the healthcare dollar. With complicated procedures and policies, it’s no wonder the cost of administration is so hefty. There are many sectors, different plans, and other moving parts that make up the healthcare system. These complications and various sectors increase the cost without giving much in returns.
2. Drug Cost – the cost of various drugs and medications used in the healthcare industry is constantly rising. A part of the reason for this is there is no cap on the cost private pharmaceutical companies can charge for their product. This makes it hard to leverage a cost that is favorable to the consumer. Often patients aren’t able to afford or even get their hands on the treatment and medications they need. It is possible to manage the cost with government regulations but this particular area won’t be easy to address.
3. Medical Staff Cost – the cost for medical staff is higher in the U.S than in other countries. While there is no dispute that medical staff should be paid fairly for their work it is one of the reasons why healthcare is so costly. If you need to see a specialist you will find yourself paying more than seeing a general practitioner.
4. Hospital Cost – the cost of hospital care is significantly more in the U.S than in other countries. Hospitals operating like profit centers and the fees can stop patients from getting the care that they need. It amounts to about 33%-35% of the cost of the nation for healthcare. This is another area that needs regulation to prevent hospitals from drastically hiking the cost of medical procedures.
5. Varying Cost – the cost of healthcare varies dramatically across the market. Lack of regulation means that practitioners can charge whatever the market will withstand. This unfortunately does not take into account those with less than favorable financial means. In its own way, it denies a person medical care simply because of the cost that does not reflect the genuine value of the service. Until there is a regulation or a cap on services this will continue to drive up the cost of healthcare in the U.S.
How To Cover The Cost?
One of the most effective ways to cover the cost is to supplement your existing medical insurance with supplemental insurance. This will help to take care of the odds and ends that your current policy doesn’t cover. You will find this extremely helpful. These are also known as Medigap. For seniors, the cost varies and depends on factors such as age, location, and existing health issues. You will need to get a quote but here’s what they average: $50 – $300 per month. Make sure to get a quote and see where exactly you need help in your existing medicare policy.
Medical expenses can put a strain on anyone’s pocket. Now that you know why it’s so expensive and what you can do to supplement the cost you can better prepare yourself for future issues. If you don’t have insurance or can’t afford it or supplemental insurance then you can take some proactive steps. You can do your best to maintain your health through your diet and lifestyle. You can also start an emergency fund. You don’t have to put a lot into it at one time but whenever you can put something towards it. Eventually, you’ll have a decent amount that can help in emergencies.