💰Rising premiums, shrinking paychecks: A healthcare dilemma

One of my goals for 2018-2023 2024 is to be mindful of my spending habits. With inflation and the cost of living getting more expensive each year, one of the “tricks” I find myself doing is asking,

“How many hours do I have to work to afford this?”

Study: Minimum wage workers need 1000 hours to afford an average U.S hospital stay

California recently announced an increase in the minimum wage for fast-food workers to $20 and for healthcare workers to $25.

In comparison, the federal minimum wage for covered non-exempt employees is currently at $7.25.

An expensive overnight stay

Nationwide, the average cost of a hospital stay is $2,883 per day, with an average stay of 4.5 days - equaling $12,974.

A study found that in most U.S. states, a person earning a minimum wage would need to work over 1,000 hours to afford an average hospital stay.

Over 1000 hours! That’s almost working 40 hours a week for six months.

The state with the highest required hours of minimum wage to afford a hospital stay is Utah, while South Dakota requires the fewest hours.

Below is a ranking of all 50 states and the District of Columbia based on the hours of minimum wage work needed to afford the hospital stay:

How many hours do you have to work to afford a hospital stay in your state?

Premium that’s not so premium

Happy Earth Day! Time seems to be flying so fast these days.

Anyway, I was going over my taxes this year, and I noticed something off. My take-home pay is less than what I was making last December.

It looks like the premium for my health plan has gone up. Again.

This seems all too familiar.

From 2011 to 2021, the median annual premium increased by nearly 60% for people with individual plans, including ACA plans, while small and large group employer plans saw a minimal increase:

• 59% increase ($3,574 to $5,683) for individual plans purchased through ACE exchanges or off exchange

• 5.9% increase ($5,701 to $6,035) for large group plans (firms with more than 50 FTE employees)

• 9.6% increase ($5,683 to $6,228) for small group plans (firms with 50 or fewer FTE employees)

In 2023, the average cost of healthcare premiums for single and family health insurance increased by 7% from $7,911 to $8,435 for individual coverage, while family coverage increased from $22,643 to $22,967.

It’s not surprising that 2024 premium rates have also increased. A report from August 2023 reported that most proposed rate increases for 2024 ACA Marketplace plans fall between 2% and 10%, with a median increase of 6%.

It doesn’t seem like healthcare premiums will be any cheaper any time soon. Definitely plan ahead and factor in an increase in your health spending every year.

I guess healthcare is just like everything else and is not immune to inflation. But unlike groceries, you can’t easily get a generic version of your healthcare.