{"id":69,"date":"2019-11-04T22:51:22","date_gmt":"2019-11-04T22:51:22","guid":{"rendered":"https:\/\/market-wisdom.com\/?p=69"},"modified":"2020-09-25T23:22:55","modified_gmt":"2020-09-25T23:22:55","slug":"the-middle-class-cant-afford-medical-care","status":"publish","type":"post","link":"https:\/\/market-wisdom.com\/index.php\/2019\/11\/04\/the-middle-class-cant-afford-medical-care\/","title":{"rendered":"If you\u2019re middle class you can\u2019t afford to get sick"},"content":{"rendered":"\n
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Image<\/a> courtesy Sasin Tipchai\/Pixabay<\/figcaption><\/figure>\n\n\n\n

Background<\/span><\/h2>\n\n\n\n

The average American household spends 8% of their budget, $4900 a year, on health care. This cost has been rising over time  (see the How Americans Spend<\/a> post).  However, the average cost hides a world of (financial) pain households are facing.  If you get insurance through your employer (50% of households<\/a>) you pay less than buying on your own (7%). However, but any household that\u2019s not on Medicare (14%) or Medicaid (21%) may be faced with some very difficult spending or saving choices given the high cost of getting care.  This post explores the reality for working households and digs deeper than the averages to understand different types of consumers. <\/p>\n\n\n\n

This analysis won\u2019t begin to look at the why<\/em> of rising expenses \u2013 that\u2019s an entirely different topic.  And because trying to find good data on health spending, and getting clear insurance plan comparisons, is slightly more difficult than inventing perpetual motion, treat the numbers below as a good indication of reality but not the final answer!<\/p>\n\n\n\n

Findings<\/span><\/h2>\n\n\n\n
\"Graph<\/figure>\n\n\n\n

The short story is that many families can\u2019t really afford health care \u2013 and financial services firms do them no favors by skirting the issue in their planning tools.<\/p>\n\n\n\n

I\u2019ll focus on costs for the stereotypical family of four \u2013 two parents and two children. The analysis below excludes<\/em> their paycheck contributions to Medicare, Medicaid and other governmental programs taxed through employment. The short story is that the middle class can’t afford medical care!<\/p>\n\n\n\n