Tag: Obama

How Health Care Costs are Damaging the American Economy

The economy in America is dependent on people having money they can spend on businesses in their areas. Since the downturn of this economy, the country has been trying to bolster this economy in a variety of ways. Remember those random stimulus checks some people got several years ago? That was one-way people were encouraged to get out there and spend that money in their cities and towns and grease the wheels of the economy a bit.

When it comes to healthcare companies throughout the country, their rising costs are among the biggest causes of economic strain. Calling on statistics that were used to formulate the “universal” healthcare bill generated by the Obama administration, the average person in the country will spend a total of 20 percent of the money that they have or will have to some form of health coverage or medical expenses.

This is not unlike the high taxes that in other highly developed countries around the world offering universal healthcare. This is to cover the costs of paying the medical professionals, total expenses of all operations and treatments, and anything else that might arise. When you consider the fact that insurance companies all throughout this country are only paying pieces of the cost of your medical expenses, and have the perpetual options of denying covering the cost of something they don’t deem necessary, the average American has to tread cautiously.

It means that the money Americans are making, that could be spent in their regions and feed back into an economy in desperate need of a rebound, is instead being held back in case of emergencies. It keeps money sitting idly. No economy thrives where people don’t feel comfortable spending their money. Factor in the rising costs of living, and you have much less going out regarding general commerce than what can sustain an economy on the national level.

The middle class is often being forced to pay for the entirety or a large part of the monthly costs of their health insurance. Based on a national average of a 5 member family, the typical cost of a monthly insurance plan is over seven hundred dollars a month. It can go up by hundreds of dollars depending on the nature of the employment. Factor in the often critical deductible cost for operations or medical emergencies, and you have a middle class of this country that is very apprehensive to do anything but save back extra money for an emergency.

The truth is, part of the problem is that often health insurance companies are exploiting the misinformed masses to offer coverage at a premium cost they will never actually need. For example, senior citizens (who often stand a great chance at bolstering an economy because they typically own most things out right) are often persuaded to take on specific plans that require them to pay more for the facets of the coverage they will use while also paying for things that they will likely never need.

When you consider that insurance companies are multi-billion dollar industries, it stands to reason they make a lot more off of people than they pay out for them. So make sure that you are not buying into things that you don’t need. Do not ever feel stuck in one place, and shop around for places that will allow you to pick and choose your coverage based on what you need in a price range that can better suit your budget. When you have this in check, and others follow suit, then the economy starts to bounce back. This will only happen when big corporations are not as able to keep you living in the corner scared of a significant medical expense they won’t cover, and you are able to more comfortably afford the coverage you need.