THE WALLETHUB STUDY RANKS TOLEDO among the top four U.S. cities where residents spend the highest percentage of their income on health care, alongside Detroit and Cleveland. With Toledo households spending more than 11 percent of their earnings on medical costs, the data highlights a growing concern for families trying to balance access, quality and affordability.
Chip Lupo, WalletHub writer and analyst, said, “As health care gets increasingly more expensive, more and more people find themselves struggling to afford essential services and medicines. While some cities have lower prices than others, the average income in many places still may not be enough to keep up with the costs, especially when consumers have also faced inflated prices across all other facets of their budgets over the past few years.”
What caught The Toledo Clinics' Chief Administrator Tom Sylak’s attention is the high cost of health care for Toledo residents compared to other cities in NW Ohio and SE Michigan.
Toledo ranked in the top four in gross health care spending cost, according to the WalletHub report. The report cites 11.03 percent of the monthly income spent on health care, compared to Detroit (13.7 percent) and Cleveland (11.35 percent), the top two.
Barry Shaner, CEO of Directions Credit Union, has worked for Directions Credit Union for more than 30 years and in the credit union business for over 40 years.
Health expenses are one cause of financial difficulties when someone is injured or dealing with a chronic illness. Shaner said, “It’s a real shame when you see that, and that’s certainly one of the biggest reasons that someone runs into financial difficulty.” This raises an important question: What can patients do to reduce their health care costs, while maintaining or improving their health?
With the high cost of health insurance, Sylak said, “Most people don’t realize they can shop for health care services just as they would any major purchase.” Consumers can be smart consumers and can take steps to face the high cost of health care.
Here are five ways to be a smart consumer of health care.
1. Pick the right place to go.
Picking the right place can save health consumers and patients hundreds, if not thousands, of dollars. It is important to know the right place that best suits ones health needs and services. That may even include checking in-network or out-of-network providers. The price differences can be costly, depending on the health issue at hand. A lab test that is $14 at The Toledo Clinic could be $59 at a competitor. An MRI of the spine could be $664 compared to $1,100 or more elsewhere. The cost of an emergency room (ER) visit could be thousands of dollars, compared to a trip to urgent care that could be $150.
2. Start with prevention. Begin prevention with the basics of eating well, getting enough exercise, and following your physician’s care plan.
The Toledo Clinics' internal data shows that the more regularly you see your primary care physician, the more your health improves. At the same time, while office visits carry a cost, this investment pays for itself by preventing the far more expensive consequences of untreated conditions.
3. Choose cost-conscious physicians.
The Toledo Clinic’s organization participates in several programs that reward physicians for delivering high-quality care while keeping costs low. The programs support careful test ordering, appropriate referrals, and proactive management of chronic illnesses, all of which reduce unnecessary spending for patients.
For more than 100 years, The Toledo Clinic has prided itself on providing high-quality care at a low cost. A physician can refer a patient to a specialist depending on the services and care necessary for treatment and diagnosis. When choosing costconscious physicians, advisors can help patients assess personal quality of care, along with health care needs, and assist with creating a budget for the services needed for treatment and care.
4. Become a smart consumer of health care services. Anyone can be a smart consumer by shopping for health care services. In 2021, the federal government passed the Hospital Price Transparency Act, which has undergone several updates. The law requires hospitals, health care systems, and insurance companies to make their prices publicly accessible. This means patients have the right to compare costs before receiving care.
The number one consideration is to pick the right insurance plan. Weigh in on how much going to a doctor is necessary to meet medical needs. A high deductible will save money on premiums, but someone with chronic conditions or prescription medications that need to be taken regularly, although the premium is higher, may benefit from a lower deductible plan.
Senior citizens could use a broker in a Medicare program to help them identify their historical expenses and help them find a cost-effective program that best serves them, as well as ensure their current provider is a part of that plan.
5. Set up a financial plan. As part of a financial plan, consider setting aside a budget for health care. Independent groups work with hospital systems in the area, understanding the structure of those organizations to help direct patients to the lowest cost provider. Take advantage of tax accounts or available tools. Flexible spending accounts are available through employers that could be set up for health-related expenses.
The best way to begin a financial plan is to talk to a provider or the hospital billing department. Inquire about the best available solution to address payment plans. Don’t ignore the bill; set up a financial plan.
Open up a health savings account (HSA) at an affordable financial institution, such as Directions Credit Union, where no fee is charged to maintain an HSA. Setting up an emergency savings account is essential for unexpected doctor/hospital/ urgent care visits.
The rule of thumb to financial planning is to have $1,000 set aside for unexpected in-the-moment emergency situations, such as covering costs for a car accident. For emergency situations with long-term effects consider saving three-six months of living expenses.
Having long-term emergency saving expenses on hand can be helpful for addressing situations when a spouse loses a job or in medical emergency situations when a child playing little league baseball ends up in the ER with a broken arm.
Credit unions are a great place to hold those emergency funds because the cost to maintain an HSA is affordable, with high returns on investment.
The benefits of health insurance •Provide some financial stability to the patient who has health insurance.
•Based on the services that the health insurance companies provide, there could be services that are not paid for by the patient but are part of the program.
•Wellness services are also often a part of that. Insurance companies help control costs by making sure the appropriate testing is done in the appropriate order.
•Be a smart consumer of health care services and understand the cost of a service before blindly going to where a physician makes a referral.
•Be an advocate for health and be aware of what is necessary for individual health care needs. ✲
