In the United States, healthcare has grown into a $3 trillion industry. That’s $3,000,000,000,000. That’s a lot of zeros—so many that for most of us, the number doesn’t even seem real. But if we break it down to a personal level, that means the average American spends more than $11,000 per year on healthcare costs. If that doesn’t sound troublesome, consider the fact that the annual cost of healthcare for a family of four tops $28,000 opens in a new window. With the median household income coming in at $63,000 per year, that means the average US family can wind up spending more than 40% of their annual income on medical-related expenses. That’s steep.
Even with employer-provided health insurance, which covers roughly 56% of the US population opens in a new window, the employee contribution and out-of-pocket deductibles can leave families buried under an avalanche of medical debt. It’s hard to understand how an industry responsible for personal care can seem so unconcerned when it comes to the financial state of its patients. But with a growing number of hospitals being operated as investor-owned, for-profit businesses opens in a new window, return on investment often seems more important than compassionate patient care.
Difficult Times Call for Creative Approaches
As medical bills continue to climb, the corresponding rise in medical collection agencies only perpetuates the healthcare industry’s callous reputation. In a conversation about the cold, impersonal nature of medical collections, Elizabeth Rosenthal opens in a new window, author of An American Sickness, observed, “…to them [collection agencies], a bill is a bill is a bill. They don’t care if it’s for somebody’s heart transplant…or if someone spent a lot more money on a Rolex watch that they couldn’t afford.” Over the last few years, medical bills have become the number one cause of bankruptcy opens in a new window in the United States. With that in mind, it should come as no surprise that GoFundMe campaigns have become one of the most popular ways for consumers to cover their medical costs. According to GoFundMe statistics, approximately 250,000 fundraising campaigns are established on the platform every year just to pay for medical expenses. The $650,000 generated by those campaigns points to a significant problem in the healthcare system. If you’re one of the thousands of Americans struggling to keep your head above water as medical bills flood in, you might feel helpless. And while there are no magic solutions that can make legitimate medical debt disappear, there are a few steps you can take to stay afloat. If you haven’t run into medical debt yet, these steps might be able to help you avoid the frustrations so many others have experienced.3 Ways to Keep Your Medical Expenses in Check
- Review Your Bill
- Consider a High-Deductible HSA
- Create an Emergency Fund