If a slumping housing market, stock market losses and mounting job layoffs haven’t caused enough headaches, rising health care costs certainly will have people reaching for aspirin in the new year.
Health care costs for employers are expected to increase on average 10.6 percent this year, according to a recent survey of health care institutions by Aon Consulting Group.
The survey found health care costs were expected to increase by 10.6 percent for HMOs, 10.5 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. In addition, prescription drug costs are expected to increase 9.2 percent this year.
With these expected cost increases, many employers are adding higher deductible plans to what they offer employees — shaving off some of the employers’ costs. A recent survey of employee-sponsored health care plans conducted by human resource consulting firm Mercer found that between 2003 and 2007, the median family deductible for in-network services in a PPO — the health plan type offered by most employers — rose from $1,000 to $1,500.
Another Kaiser Health Tracking poll found that one in three Americans had problems paying medical bills in 2008. That rate was up from 2006, when one in four people reported having trouble keeping up with health care costs
“Health care is just one more area where consumers are feeling the financial squeeze,” said Gail Cunningham, spokeswoman for the Silver Spring-based National Foundation for Credit Counseling. “Health care and medicine are commodities consumers simply can’t do without, but they feel a sense of powerlessness when it comes to controlling those costs and paying for services.”
» Go over your bill with care.
Note any items you don’t understand, as well as any charges you want to question. Estimates show that an extremely high percentage of medical bills contain errors, and it’s highly unlikely the error will be in your favor.
» Make sure you understand what you should be paying and what your insurance company is responsible for.
Stay in the loop, making certain that payments are being disbursed on time. Many people don’t understand that the ultimate responsibility for payment lies with them. You’ll want to stay on top of any dispute between the provider and your insurance company.
» Use caution when applying for a medical credit card.
Some cards transfer all of the debt away from the provider and onto the new card. While the medical debt might not carry any interest with it, the credit card will.
» Ask if you qualify for any type of charity or other write-downs.
This is essential if you are not insured, but even those who carry health insurance can often negotiate a better payment. Start by asking what the fee would be if you were a Medicare patient. You will have to work out separate payment arrangements with each provider, but again, this will be time well-spent.
Source: National Foundation for Credit Counseling
