Healthcare costs are killing our 401k's and plenty of other things in life:
Bottom Line: It's wholly ironic that something theoretically designed to make you healthier is actually depriving the average American of health...in addition to saving for the future and life's fun stuff. But that's exactly what's happening with the state of health insurance under the not-so-affordable care act. As I've recently cited, The Kaiser Family Foundation found that the costs of health insurance premiums in addition to high deductibles are so repressive that 42+ million people have health insurance coverage but never can afford healthcare. That means that those people paid an average of around $6500 for nothing. Actually worse than nothing but the opportunity costs were/are also steep.
Bank of America and Merrill Lynch are out with a study that shed light into just how many meaningful life decisions are negatively impacted by the repressive healthcare/insurance costs. Here are a few:
- 66% of Americans forego entertainment due to healthcare costs
- 63% save less for retirement
- 48% pay less towards debt
And that's barely scratching the surface of the real impact. Basically healthcare costs have become so prohibitive that the average American's financial present and future are negatively impacted even without a negative health event and we enjoy life less. Thank you Obamacare. Once again the answer is to put an end to the "insurance first" model and transition into a system where we'd use health insurance just as we do with all other forms of consumer insurance.