Gottier Investments

860-683-1245

Insurance Read Time: 3 min

The Cost of Medical Care

When uninsured people end up in the hospital, “sticker shock” can follow. Just a quick look at the current prices for medical procedures can be sobering.

How much does a CT scan cost? Between $300-$6,750, depending on where it is performed. Need a stent in your heart? The cost of that delicate procedure can cost between $11,000-$41,000. How about a knee replacement? The total cost adds up to an average of $31,124.1,2,3

Are these the only costs associated with a hospital or outpatient visit? Not quite. Think of the cost of the room, the medications, the anesthesia. Fortunately, many Americans have health coverage, so they only have to pay a fraction of the expenses linked to these and other procedures. Those without health coverage may find themselves in financial pain.

These days, you may take a big financial risk if you go without health insurance. Just one accident, one surprise trip to the hospital, and you may be left with a debt rivaling an auto loan.

If you need to pay for your own health coverage, the cost may be well worth it. Imagining that you can go without it for the next five or ten years may not be realistic, even if you are a millennial, or a member of Generation Z just leaving college. You might have a five-figure debt already; could you handle another one, perhaps with little or no warning?

Just how much does it cost to self-insure? Well, here is one estimate. According to the Kaiser Family Foundation (KFF), a hypothetical 40-year-old non-smoker making $30,000 per year is projected to pay an average of $438 per month for a benchmark health insurance plan for 2022. That works out to $5,256 for a year. The KFF reports, though, that the monthly cost could fall drastically with the help of a premium subsidy via federal or state government. This year, the national average cost of a Silver plan after a premium subsidy is about $67.4

Here is another projection. Looking at the 37 states in which residents buy coverage through Healthcare.gov, Investopedia calculates the average monthly cost of a benchmark plan at $392 for a hypothetical healthy 27-year-old, a price which could be lowered with subsidies applied.5

You can choose to put off paying a few thousand dollars a year for health insurance, but in doing so, you are also choosing to assume a great financial risk. A major medical procedure can cost as much as a new car, or a college education.

Keep in mind this article is for informational purposes only. It's not a replacement for real-life advice, so make sure to consult your financial or healthcare professional before modifying your insurance strategy.

If you are uninsured, take some time to look at your choices with someone who knows the insurance market. Do it today, as you never know what tomorrow could bring.

1. NewChoiceHealth.com, 2022
2. CostHelper.com, 2022
3. KneeReplacementCost.com, 2022
4. HealthMarkets.com, 2022
5. Investopedia.com, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Planning Your Legacy

Planning Your Legacy

Legacy or estate planning is part of good retirement planning. Here are a few things to consider when working on your plan.

Spotting Credit Trouble

Spotting Credit Trouble

The wise use of credit is a critical skill. These 10 questions will help you assess your skill level.

Why It Pays to Eat Healthy

Why It Pays to Eat Healthy

For many Americans, eating “healthy” has become a priority, whether for weight loss, disease control or prevention, or just doing right by your body.

 

Have A Question About This Topic?







Thank you! Oops!

Layers of Protection

Take these five steps to protect your financial well-being before making any other changes.

Uncommon Knowledge for Your Life

See how The Living Balance Sheet® can help you tell financial fact from fiction, so you can achieve financial balance.

The (Other) Talk: Preparing Your Parents for Retirement

For much of our lives, our parents are the ones who have to bring up uncomfortable topics. (Just think back — and squirm — to their birds and bees talk. Awkward, right?) But once we become adults, sometimes it’s our turn to start sensitive conversations.

View all articles

Estimate Your RMD

Help determine the required minimum distribution from an IRA or other qualified retirement plan.

Interested in a Fuel Efficient Car?

Estimate how many months it may take to recover the out-of-pocket costs when buying a more efficient vehicle.

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

View all calculators

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

View all presentations

The Rule of 72

Do you know how long it may take for your investments to double in value? The Rule of 72 is a quick way to figure it out.

Surprise! You’ve Got Money!

Here’s a quick guide to checking to see if you have unclaimed money.

18 Years’ Worth of Days

The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

View all videos