Living on the Edge: Not Just an Aerosmith Song
Do you have the cash reserves on hand to deal with a medical emergency?
...the number of
uninsured Americans
rose by 1.3
million last year
A recent study by the Kaiser Family Foundation (KFF) found that only 22.3 percent of middle-class families could financially cope with a small medical emergency—an equivalent of just over $3,000—which would treat injuries like broken bones.
The middle-class seems to be living on the edge, points out a recent MSN Money story, which explores the findings produced by the Democratic-funded Center for American Progress.
Financial declines over the last five years are to blame for the monetary squeeze in the middle class, says the CAP. As a result, the income for middle-class families has remained "stagnant or flat" since 2001, while prices for life's essentials—housing, education, transportation and health care—have dramatically increased.
Of course, the increased cost of health care in recent years has also driven up the number of Americans without health insurance. The U.S. Census Bureau reports that the number of uninsured Americans rose by 1.3 million last year, bringing the grand total of uninsured adults in this country to well over 46 million.
To that end, MSN Money reports that the KFF found that the cost of family health insurance has skyrocketed by nearly 90 percent since 2000. And remember that aforementioned 'small medical emergency'? Today, just over 22 percent of middle-of-the-road families could afford to pay for something like a broken ankle, which is down from the nearly 35 percent that could handle that expense in 2001.
As a result, MSN Money reports that Americans are taking on record amounts of debt and dipping into the equity of their homes to pay for things like health care and education.
And while these figures are quite compelling, conservatives have attacked the CAP study, arguing that the concern for middle America has been blown out of proportion:
"Let's not kid ourselves. The data say we're wealthy. And we're one of the wealthiest nations on Earth," said Tim Kane, a director at the Heritage Foundation, a conservative think tank in Washington, D.C. "You can make a case that there is increased inequality, with the rich getting richer, but I don't think there is increased poverty."
Politics aside, I'd say from what I've observed both in my own life and in my work and research here at InsureMe, that folks are having a rough go of things where health care and health insurance are concerned. And, while costs in these areas are growing, it's important for families not to skimp on the insurance if at all possible. Because while a small medical expense could set you back three grand, a larger medical expense could put you in debt for years.
Check out the full MSN Money article here, and visit the links below for health insurance information and resources.
From the InsureMe Insurance Resource Center:
Tips for Medical Insurance Shopping
The Uninsured: Falling Through the Cracks
All about Health Savings Accounts
The Many Forms of Managed Care
You can also find health insurance information as it pertains to your state by browsing our state-related articles.
