Offsetting the Effects of Current Health Care Trends with Supplemental Coverage
CHICAGO--(December 10, 2007) -- "In 2008, we will see a continuation of a few key trends in health care and insurance: rising healthcare costs, employees sharing more of the cost of health benefits and increasing health-related early retirements," comments Doug Wendt, president and chief executive officer of Combined Insurance Company of America, a leading provider of supplemental insurance coverage. "Supplemental insurance plans are one way consumers can help offset the effects of these growing concerns."
Rising Healthcare Costs
According to a 2006 survey conducted by ABC News, the Kaiser Family Foundation and USA Today, one in four Americans say their family has had a problem paying for medical care during the past year, up seven percent over the past nine years.
"This disturbing trend highlights the importance of understanding the impact that an accident or sickness can have on a family's budget," says Wendt. A recent study by Harvard University researchers found that 50 percent of all bankruptcy filings were partly the result of medical expenses and that 68 percent of those who filed for bankruptcy had health insurance. "More and more people are having a hard time managing their loss of a paycheck and the out-of-pocket non-medical expenses, even when they have insurance that covers the bills from their doctor or hospital."
Lengthy illnesses or a sudden death can result in unexpected expenses beyond the cost of medical care or a significant loss of family income. Most Americans do not continue get a paycheck throughout the long recovery period that follows a significant illness or accident.
"Supplemental insurance plans are available for most circumstances and budgets," adds Wendt. "They can help protect your savings and your way of life in the event of an unexpected accident, illness or death."
Employees Shouldering More of the Load
Health insurance expenses are one of the fastest growing cost components for employers. This is leading many companies to require employees to shoulder more of the cost of their benefits. The 2006 annual survey of employee health benefits conducted by the Henry J. Kaiser Family Foundation showed that employer health insurance premiums were up nearly eight percent - twice the rate of inflation. And according to Hewitt Associates, average out-of-pocket costs for deductibles, co-payments for medications, and co-insurance for physician and hospital visits rose 115 percent between 2000 and 2004.
"Sometimes primary health-related policies don't cover all costs associated with sickness or injury," notes Wendt. "Supplemental insurance can help with expenses such as deductibles, co-payments, medical equipment, outpatient care and the costs associated with family members staying nearby to support the hospitalized family member. Some plans can also help make up for lost income when you are unable to work due to extensive illness or injury. This type of additional protection can fill the gap that often exists between primary health care coverage and needed treatment and care."
Retiring Early by Necessity
The most recent retirement survey from Employee Benefit Research Institute (EBRI) shows that 37% of workers are forced into early retirement. Of these, 28% retire due to their own health problems and another 25% have to leave the workforce to care for a family member.
"More and more people are planning to work past age 65," says Wendt. "With longer life expectancies and a decrease in company-provided pensions, many people are less confident about their financial stability to retire at 65. And, many baby boomers need to work to age 66 or beyond to receive full Social Security retirement benefits. This makes an unexpected early retirement even more challenging. Protection for catastrophic illness, disability and long-term care can be vital pieces of a solid financial plan to ensure your future."
Finding the Right Coverage
Combined's career agents offer face-to-face consultation to help an individual identify his or her personal and family needs, then determine the optimal coverage to meet those needs.
"There are a lot of options available, so it can be a little daunting," notes Wendt. "But finding the protection can be simple with the help of a professional who is willing to take the time to understand your needs."
About Combined Insurance Company
Combined Insurance (www.combinedinsurance.com) is a leading provider of supplemental accident, health and life insurance products and is a member of the ACE Group of Companies. With a field sales force and corporate staff in excess of 10,000 people worldwide, Combined meets the growing coverage needs of policyholders around the globe. For more information, call 1-800-490-1322 or visit www.combinedinsurance.com.
About Aon
Aon Corporation (NYSE:AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. Through its 43,000 professionals worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was ranked by A.M. Best as the number one global insurance brokerage in 2007 based on brokerage revenues, and voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 by the readers of Business Insurance. For more information on Aon, log onto www.aon.com.
Contacts
Outlook Marketing Services, Inc.
Marcy Manning
847-465-8700 x14
or
Combined Insurance Company
Amy Burrell-Tichy
847-953-8321
Amy.burrell-tichy@combined.com