Understanding the Financial Risks of Hospital Stays for Active Families

For active and healthy families, unexpected medical emergencies can pose significant financial challenges. While regular doctor visits might be infrequent, unforeseen incidents requiring hospital stays, outpatient surgeries, or ambulance rides can result in substantial out-of-pocket expenses. Some of the most common reasons for hospital stays include serious injuries from accidents, complications from childbirth, severe infections and pneumonia. When you look at these possible costs and how they can affect a family’s budget, it’s easy to see why having strong health coverage matters. Supplemental hospital plans can help fill in the gaps and provide peace of mind when the unexpected happens.

The High Costs of Medical Services

1. Hospital Stays: The average cost of a hospital stay in the United States is approximately $3,025 per day, with variations depending on the state. For instance, in Utah, the average expense per inpatient day is about $3,550. Considering the average hospital stay lasts around 4.6 days, total expenses can quickly accumulate to over $13,000. This estimate reflects the cost without insurance, which is why choosing the right health plan is so important. A good health plan can cover a portion of these costs, but with high deductibles becoming more common, families may still face large bills unless they have supplemental coverage.

2. Outpatient Surgeries: The cost of outpatient procedures varies widely. For example, a knee replacement surgery averages $18,562 when performed in a hospital outpatient department (HOPD) and $14,088 in an ambulatory surgical center (ASC). Even less complex procedures can result in bills exceeding several thousand dollars.

3. Ambulance Rides: Emergency transportation is another significant expense. A ground ambulance ride can cost between $1,200 and $4000, while air ambulance services range from $12,000 to $55,000, depending on distance and services provided. While these services are typically covered by health insurance, families are often required to meet high deductibles before that coverage fully kicks in. Supplemental hospital plans can help cover some of these upfront costs, easing the financial burden when emergencies arise. 

The Broader Financial Impact

Medical expenses are a leading cause of financial strain for many American families:

• Medical Debt: Approximately 15% of U.S. households reported having medical debt in 2021. This debt often leads families to deplete savings, accrue credit card debt, or even face bankruptcy.

• Bankruptcy Due to Medical Bills: Studies indicate that medical issues contribute to about 66.5% of personal bankruptcies in the U.S., affecting an estimated 530,000 families annually. Majority of these families had a health insurance plan in place. 

• Crowdfunding for Medical Expenses: The rise of crowdfunding platforms highlights the financial challenges many face. In 2020, approximately 200,000 U.S. campaigns on GoFundMe were related to medical causes, a 25-fold increase from 2011. However, only about 17% of these campaigns reach their financial goals, indicating that many families still struggle to cover medical costs despite external assistance.

The Role of Supplemental Hospital Plans

Given these potential expenses, supplemental hospital plans can offer an added layer of financial protection. These plans are designed to cover costs that primary health insurance may not fully address, such as high deductibles, copayments, and other out-of-pocket expenses associated with hospital stays and related services. For active families, this means peace of mind knowing that unexpected medical events won't lead to overwhelming financial burdens.

Families shouldn’t have to rely on the generosity of others through crowdfunding platforms like GoFundMe to pay for medical bills. Nor should they have to cross their fingers and hope the hospital will waive some of their expenses. With the right coverage, families can plan ahead and protect themselves financially before a health crisis ever happens.

In conclusion, while it's impossible to predict every medical emergency, understanding the potential costs and proactively securing comprehensive coverage can safeguard your family's financial well-being. Supplemental hospital plans serve as a crucial component to health insurance, ensuring that families can focus on recovery rather than financial strain during challenging times.