It’s the only word that I can think of to explain the lack of financial understanding and the relationship between employers/management, and employees. Consider the statistics:
Consider this:
- 49% of Americans can’t cover a $400 emergency expense (*YouGov)
- 69.9% of Americans say they have delayed care due to cost (*SELF)
- 46% of Americans have Medical Debt *(SELF)
- 44% with medical bill problems say it’s a major impact on their family
- 64% of Americans living paycheck to paycheck (*CNBC)
- 500,000 families per year experience medical bankruptcy (*APHA)
- Medical debt is the #1 cause of Bankruptcy
An employee who makes $55,000 per year nets out $11,150* per year after mortgage/rent, clothing, food, and transportation or $929 per month.
*Mortgage/rent (~$12,000/yr), clothing ($1,925/yr), food (~$8,695), and transportation (~$7,480/yr)
If so many Americans in this country are living paycheck to paycheck and have medical debt, why are employers continuing to increase deductibles, out-of-pocket expense limits, and monthly contributions for their employees’ health insurance?
The four largest insurance companies made $11 Billion dollars in profit in the 3rd Quarter of 2022 yet the double digit increases keep coming. Einstein’s Rule Of 72 would tell you that employer premiums have doubled every six or seven years. How is this sustainable? It can’t be at the employees expense. After all, wage increases are minimal compared to health insurance increases.
Stock prices PPACA Passage Today
United Healthcare $32.70 $518.64
Anthem $39.86 $502.20
Considering there are so many options for employers to reduce healthcare costs by ditching BUCA and their fake PPO discounts, why aren’t they taking advantage of them? Why are so few employers considering different proven, cost saving strategies to reinvest the substantial savings into their employees? Is it because they don’t know about them? Or is it about their broker wants to maintain the status quo so they can make more money?
While employer‘s keep renewing with the status quo BUCA increases, they have become detached from reality about understanding their employees financial needs are, and employee affordability. If and employee can’t afford to receive healthcare, they certainly can’t afford to keep paying for the health insurance out of their paycheck.
I challenge employers to do what’s right for their employees and lower their costs whether it’s when they need a procedure or when it gets taken out of their paycheck. If you want to know how, give me a call and we can chat.
