The second level comprises health maintenance and routine medical procedures. For these, insurance is not answer. Instead, there are two alternatives. One is for people to pay these costs out of pocket, way we now pay for many other routine needs. There are number of benefits to this approach, including no managed care and less paperwork. For many people, coming up with cash to pay routine medical bills, especially if they know that any major illness or injury would trigger a backup insurance plan, would not be difficult.

For others, however, it would. Fortunately, back in 1980s, idea of so-called patient advocacy via health care savings programs was born. The availability and popularity of these programs is picking up year after year, as more and more people, unable to get or afford health insurance, are discovering them for first time. These programs negotiate prices with health care providers on behalf of their members. Since they represent large groups, resulting discounts are usually same that hospitals and physicians give to big insurance companies. But this is where similarity with old health insurance model ends.

With health care savings program, it's a patient, not an insurance company, who pays bill. This seemingly minor adjustment makes a world of difference. It benefits medical providers because they get paid "on spot" without enormous paperwork and disputes with insurance companies. It also benefits individual consumers who get access to discounted "insurance rates" without having to pay high premiums. Yet most importantly, entire system appears to be financially sound and socially viable.

Unlike traditional insurance model, patient advocacy actually encourages people to seek medical help as soon as need arises thus preventing "little aches" form developing into life- threatening illnesses and financial disasters. Monthly membership fee is affordable and no one can be turned down because of a pre- existing condition. Many of such programs also allow their members to contribute money to medical savings accounts. Federal law makes this an attractive option, because medical savings accounts are tax deductible or not taxable, as long as funds are used to pay for health care.

Five years from now, average health insurance premium may well exceed a car payment and a mortgage payment combined together. There is, however, a way to keep our families healthy without jeopardizing financial security. This writing was intended to assist reader in finding that right solution by providing a better understanding of ever-changing situation and available options.

Copyright (C) by Irina 2003.

================================================================= About Author: Irina runs home-based business helping people save on health care and create steady stream of residual income working from home http://www.megaone.com/hbb/savemoney/ mailto:imakemoney@freeautobot.com =================================================================

What to expect

- The average price of prescriptions is rising 4% per year; - The average senior citizen takes 3.3 medications every day; - 60% Americans require corrective lenses; - Over 33 million need hearing aids -- yet only 6% can afford them; - 19 million Americans use chiropractic services that are not covered by insurance; - Approximately 10 million suffer from substance abuse -- cost of treating this illness is often not covered by insurance; - Another 5 million are suffering from mental illness that again is often not covered.

The solution

Americans spend nearly $200 billion annually on OUT OF POCKET healthcare expenses or nearly $1,000 per person per year. Most of this is paid for at FULL RETAIL prices.

As a solution to rising costs consider a MEDICAL SAVINGS ACCOUNT. This concept is like an IRA for healthcare. Instead of sending ever-increasing premiums to a black hole called insurance company, you buy a high deductible "catastrophe" plan and pay for everyday health maintenance and routine medical procedures out of pocket with help of your tax-free medical savings account.

You can further minimize your out-of-pocket healthcare expenses through various Healthcare Savings Programs. They negotiate prices on behalf of their members and provide access to same networks of healthcare providers that large insurance companies use. The service is available for a modest monthly fee that is only a fraction of an insurance premium for similar coverage. No long-term commitment is required and -- to make these programs even more appealing -- all pre-existing conditions are accepted. For example and details see http://www.careentree.com/310559

Summary

Healthcare today is 50(!) times more expensive than it used to be in 1960s and shows no sign of getting any cheaper. There is no free lunch in America -- only way to save money on healthcare is to understand current trends and take appropriate action.

(C) by Irina 2003.

=========================================================== About Author: Irina helps people save money on healthcare and create steady stream of residual income working from home http://www.megaone.com/hbb/savemoney/ http://www.megaone.com/hbb/makemoney/ ===========================================================