THE WATCHER

The Crossing

Being fiscally conservative and doing my best to live within my means, I keep a watchful eye on my finances. Heidi and I bought our first house in 1984. Like most homeowners, our mortgage payment has been our largest single monthly expense and the other costs of living have cascaded down from that. At one point in my home owning life, I sold an expensive home due to the high mortgage payment and down-sized into my current home. I knew this large payment would severely restrict what I could provide for my family. If I was chained to a mortgage payment that neared 50% of my income those dance and violin lessons would be hard to handle. It was a great financial move for us and it afforded me the freedom to start my own business and do great things for my children.

However, owning your own business brings new costs as opposed to being an employee. Quarterly taxes, business license fees, incorporating and the big one, health care.

Private health care in 2003 was a major decision and after I did exhaustive research, I chose a Health Savings Account. In 2003, a low monthly payment, a $5000 deductible was a financially responsible choice. The promise of this type of health insurance was lower rates and the ability to invest the difference in a personal Health Savings Account. In 2003, I paid around $370 a month and saved $300 a month into my HSA, which was also tax deductible. Fast forward five years and as you can see from the chart, my premiums have increased almost 300%.

Starting in November, I will now be paying more for health insurance than my mortgage payment. That is the crossing.

You can also see from the chart that my insurance company can raise the rates indiscriminately, sometimes twice a year. This random rate increase with no end in sight is a frightening prospect for me. Even before our recent health trials, I tried to get lower rates, but our family was declined from every major health care provider for various reasons. I was effectively locked out of shopping for better rates. It seems that insurance companies only want to ensure the healthy. So, I’m trapped with my current health care provider. They cannot drop me as long as I pay the premiums, but they can jack it up indiscriminately forever. My fear is that a day will come when I will have to make that fateful decision whether I can afford health insurance or not. I want to pay my fair share, but with no end in sight, it is depressing.

This election was critical for health care issues. In my opinion, every other issue was a distraction. What we need is affordable health care, not for-profit health insurance. We need to be able to shop plans across state lines without pre-existing conditions being a factor. It is a national disgrace that 50% of all bankruptcies are because of medical expenses. The US spends 6 times more on administration of health the care system than is peer Western European Nations. The health insurance racket earnings profits are going through the roof.

This crossing is frightening, it has no end, and it could destroy us financially. It is changing the way we live like no other expense. Until something changes, we are chained to gluttonous system that is self protecting and endlessly expensive. The economy, the war, education, energy, environment, and security are all for not if you are not healthy enough to fight for them. Fight for health care change.