In a new article for BenefitsPRO, FlexBenefits founder Jeff Smedsrud draws attention to the crushing out-of-pocket costs faced by many people and discusses the need to protect people from medical debt.
Smedsrud, a longtime benefits player, makes the case for supplemental insurance as a needed solution to help consumers safeguard their health and family finances. The cruel reality: Many people – whether they have employer, Marketplace or Medicare coverage – will face healthcare needs that surpass their financial resources.
Consider these staggering statistics:
- 41% of Americans – more than 100 million people – have medical debt, up from 34% in 2005.
- Deductibles, coinsurance and copays are on the rise. The average deductible amount has increased 10% over the last five years and 53% over the last ten years.
- Out-of-pocket medical costs, which include deductibles and copays, can run up to nearly $25,000 a year, yet most Americans would struggle to pay a $1,000 emergency room bill.
“There is a need here for consumer guidance and empowerment that cannot be denied,” Smedsrud says. “Brokers can help meet this need by educating employers and their workers about the risks and connecting them with supplemental insurance plans that provide protection and peace of mind.”
Read the full article here. (You can read the article for free by registering).
