Co-pays have steadily crept upward over the past ten years as insurers seek ways to mitigate the rising cost of health care. Now, some insurers and employers are adding a new product called critical illness insurance to their offerings in an attempt to fill in gaps in coverage for individuals with certain costly illnesses. Does it make good financial sense to purchase this extra coverage?
Inflation has not kept pace with skyrocketing health care costs, and, as a result, employers have passed some of those costs along to their workers. According to a new study by the National Business Group on Health, when you factor in premiums and other uncovered costs, the total worker share of health care costs is currently around 37%. That works out to $370 employees have to pay in premiums and other costs for every $1000 in 2013 health care expenses.
In addition, there is a rising fear that the tiered insurance coverage individuals are able to receive under the Affordable Care Act may move over to the workplace, which would only increase employees’ costs even more. Those plans include out-of-pocket costs as high as 40%, up to a maximum for individuals of $6,350 and $12,700 for families in 2014. These trends could be the reason that a growing number of businesses are offering their employees critical illness insurance.
If a policyholder is diagnosed with serious, specific ailment such as cancer, stroke, or heart attack, they will receive a lump sum payout. This money can help pay for out-of-pocket medical expenses as well as other costs associated with their treatment such as transportation, child care, or living expenses. These expenses otherwise could be very difficult for a sick person who cannot work to pay. This coverage is usually voluntary and paid for entirely by the employee.
The medical expenses that come along with a serious illness can be financially devastating. Protect your financial future by adding a critical illness insurance policy to your existing health care plan right now.
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