Personal Health Care Budgeting and Financial Management

Health is not an area one would want to save on, as you wouldn't want to face the imminent consequences. The federal government does its part of the job. The US invests in healthcare twice as much as other OECD countries, with average values reaching around 3.5 trillion US dollars. As a result, America holds a leading position as far as breast cancer and flu prevention are concerned. How responsible are Americans for their healthcare? Is health a priority to them, as it should be? Do most of our citizens keep to a reasonable healthcare routine? How does one budget their medical expenses?

The past years have taken their toll on the worldwide healthcare system and global economy, revealing severe loopholes. To many Americans, the pandemic was a wake-up call that prompted them to take their health more seriously. Most of the US adult population has health insurance, which is a good sign for the overall wellbeing of the citizens. Managing one's budget for effective healthcare management is a challenge. The reason is the economic uncertainty and the unpredictable character of medical needs. The cost of health care services in the US surpasses the one in other countries.

In the US, health care services are of high quality, but they come at an extra cost. American citizens have three main options when it comes to health insurance:

1. Private. Generally, employers provide these to their employees, both parties sharing the cost. These costs are tax-free for beneficiaries, which means that the government brings its contribution. People can purchase private insurance on their own, too.
2. Government. Medicare and Medicaid are two of the most popular programs that help the elderly and low-income people handle their medical expenses. Other governmental programs work for different categories: veterans, children, refugees, etc. Around 35% of the population are direct beneficiaries of government medical care.
3. Personal. This refers to the cases when a person pays out of their pocket for their medical bills. Most people take these funds from their savings accounts.

Around 17% of all healthcare expenses in the US are paid out of the pockets of Americans. US citizens resort to loans to cover their bills if they face unexpected medical challenges and lack the resources to pay for them. As long as their health issues are temporary, they can quickly bounce back financially. In most serious cases, consumers risk getting into a spiral of debt.

To improve their medical budgeting skills, one needs to learn more about managing their budget or seek professional help from a financial advisor. To those looking into learning about finances to boost their career opportunities, John Hopkins Carey Business School provides financial courses from industry experts. Online options are available.