A significant issue for workers, businesses and the government is the rising and growing cost of healthcare. It is projected that 16.2 percent of the gross domestic product or GDP of the United States would be spent on healthcare in 2007 alone. This statistic has grown considerably faster than the economy since the 1960s. Projected statistics places the spending cost at approximately $7,500 for every American or a total of $2.2 trillion for the healthcare cost in 2007. In 1970, the figure was about $365 for every American and $75 billion for the year. Side by side with GDP, healthcare cost has risen 2.4 percent faster since 1970. The U.S. appropriates more of its economy in healthcare expenditure more than any other developed country in the World.
The cost of health care keeps on growing faster than the economy while employers and health insurance companies that provide coverage to employees try to reconcile the difference between the demand for more health services and the ability to pay for those services. An emergence of a new strategy that may influence how private insurance will shape up in the future is seen on the horizon. The main thrust is the need for individual healthcare consumers to shoulder more financial responsibility when deciding what type of coverage and benefits they want to avail for themselves and their dependents. Even employers subscribe to the view that if employees have the power to manage their own health insurance coverage, they take greater responsibility for their health in accordance with their healthcare spending.
The millions of Americans who have lost their jobs and the millions more expected to fall victim to this economic recession are going to take a lot of muscle to handle, maybe a bit too much for the Health care system. Public health care has undergone revamp after revamp but with the strain that is currently being placed on it, more funding would be needed to add capacity. More and more people are going on day by day without proper health insurance and with more people opting for out-patient home treatment rather than stay in hospital are on the rise. Chronic disease accounts for 75% of all health care costs and this being the case, the new administration must have a quick way to provide much needed funding for the system to continue working.
Most private health care policies are too expensive and yet the gap where most Americans are now, not poor enough yet not rich enough is a target for the incoming administration. Just hope the solution comes in force, enough to bolster the capacity and abilities of the current health care system.
With the cost of health insurance premiums rising, small businesses are finding it hard to provide health care coverage. An HSA offers a new viable alternative. Health Savings Accounts (HSA) is a special type of savings account that allows employees to contribute part of your income tax-free and use it in the future for medical, long term care, and/or retirement expenses. You can only get an HSA if you also have qualified high-deductible health coverage. HSA savings are owned by the individual, you keep the accounts no matter where – or if – you work. They also roll over from year to year, so you can accumulate savings over time. Some HSAs accumulate interest and dividends that are tax-free or tax-deferred. The money in these accounts can be used towards all kinds of medical expenses, including those not covered by your high-deductible health plan, such as dental care or over-the-counter medication. An HSA is also a form of tax-deferred retirement account that can be more easily drawn upon for emergencies than their IRA counterparts.