Rising health insurance costs are increasingly squeezing small business owners, and the industry needs several drastic changes to improve access and affordability.
“Getting back to having plans that are affordable,” is vital so that average Americans can keep health care within reach, said Ray Freer, owner of RF Insurance Masters during a recent interview with “Advisors Magazine.” “When they put ‘affordable’ in the Affordable Care [Act], that’s when the prices doubled.”
RF Insurance Masters, based in Austin, Texas, provides health insurance services to individuals and businesses, in addition to life insurance and other products such as annuities and travel insurance.
Americans spend $3.4 trillion per year on health care, according to data from the Centers for Medicare and Medicaid Services. When broken down individually, that means the average American spends a staggering $9,956 on health care, according to CMS’s 2012 figures. And costs have risen rapidly over the past two decades; in 2007, the average American spent $7,700, almost $2,000 less than in 2012.
Freer works with clients to find insurance solutions suited to their situation. He only provides products that he personally trusts.
“If I’m not comfortable with it, then I’m not going to offer it to the client,” he said.
Freer remains available to clients from consultation, through purchase, and until the product is no longer used. Clients purchasing insurance through RF Insurance Masters can reach out to Freer at any time, he said.
Access to medical professionals poses another major problem for health care consumers, according to Freer. As the industry moves towards an emphasis on health maintenance organization (HMO) plans, instead of the formerly more common preferred provider organization (PPO) plans, consumers can be shut out from seeing the doctors they want, or even from receiving care at their preferred facility.
“If you’ve been seeing the same doctor for 40 years and the HMO gives you a choice of three in the Austin area, and none of them are yours, that’s a problem,” Freer said.
One client, after a liver transplant, was left “numb” after her HMO forced her to switch specialists seven times. It’s that sort of problem that should concern policy makers, Freer said.
Freer added that he works with clients to find the best solution for their needs, and that he’s hoping to see some innovation in the health insurance space soon. Whether that means another law passed targeting health costs, or an expansion of Medicare to cover younger people, or something else, he’s not sure, but ever-expanding health costs really are not an option for most.
“When you’re paying $12,000 a year [in premiums] and you have a $12,000 liability to cover your family, then you’re looking at $24,000 a year in health insurance,” Freer said. “It’s a pretty hefty price-tag to have.”
For more information see: www.rfimasters.com