Make your family's health finances crystal clear
About half of all bankruptcies filed in 2001 were the result of medical bills, according to a Harvard Report published in 2005. And 76 percent of people who had a medical-related bankruptcy had health insurance when they became ill.*

The point of these statistics isn't to scare you — but to drive home the importance of creating a family health care budget. Yes, budgeting isn't fun. But having a health care budget — and sticking to it — could be the difference between being able to pay future bills and having to seek relief from creditors.

Why should I budget for health care?
Aren't health care costs too unpredictable?
What items do I include in my health care budget?
Where's the Website that can help me?

Why should I budget for health care?
American consumers are walking a very thin rope when it comes to budgeting, and rising health care costs make the balancing act more difficult. In the past few years, the cost of health care has gone up much faster than the cost of food, cars, and even gasoline. As employees pick up more of the tab, they're increasingly concerned about their family finances.

According to the Humana Health Care Budgeting Study, conducted by Harris Interactive^®:

• 78 percent of families worry that their health insurance expenses are increasing to the point where where they can no longer afford them.
• 24 percent have gone into debt because they were unable to pay their portion of medical expenses.
• Half of America's families don't have a budget of any kind, and only half of the people who do budget take health care expenses into consideration.

The good news: three out of four people who budget for health care say it gives them more control of their family's health care expenses. So, if you feel as if health care costs are out of your control, a budget may help.

Aren't health care costs too unpredictable?
If "predicting" your annual health care expenses sounds impossible to you, you're not alone. According to the Health Care Budgeting Study, 83 percent of people say health care expenses are hard to predict.

Actually, it's easier than you think. Some costs, like what comes out of your paycheck, are the same whether you use health care services or not. Others tend to be stable from year to year, especially when you have health insurance to pick up some of the cost. So, with some basic information about your premiums and your family's usual health care needs, you can at least get an estimate...which is a lot better than guessing and coming up short.

What items do I include in my health care budget?
Your family health budget should include all the ways you pay for health care:

• Premiums — The payment that entitles you to insurance benefits.
• Out-of-pocket costs — Your out-of-pocket costs may include copayments for doctor's office visits and prescriptions, deductibles, and the coinsurance percentage you're responsible for paying.
• Products and services — This category includes over-the-counter medications, dental care, and vision care.
• Other health care costs — Other health care costs include fitness expenses, vitamins, or alternative medicine.

That's it — just four types of expenses! Now that you're aware of them, you're one step closer to building your family health budget.

Where's the Website that can help me?
Humana partnered with the advocacy group Consumer Action to develop FamilyHealthBudget.com — a free, online self-assessment tool that can help you create a health care budget.

The Build a Budget section of FamilyHealthBudget.com gives you the dollars-and-cents information you need. Simply enter some information about your health care usage and your family make-up:

• The site crunches the numbers for you, taking into consideration the average costs for people with similar health care usage.
• In just a few minutes, you've got a budget...plus some tips on how to take care of your family's health care needs and still save money.
• The site also offers general information about health insurance to help make you make decisions and understand how your plan works.

Take control of your family's health care finances today — start building your budget now!

Bottom Line:
If you feel as if health care costs are out of your control, a family health budget may help. Go to FamilyHealthBudget.com today. Just a few minutes of planning may help you avoid the high interest charges — and stress — of paying health care bills with credit cards.

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*Source: Kowalczyk, Boston Globe, 2/2/05