Blog Posts

Healthcare for the Service Sector

Although the service sector keeps our economy going and makes our lives easier, service workers are often the lowest earners in our economy. For example in the United States, the average teacher’s salary is mid-thirty thousand to $40,000; the average automotive mechanic’s salary is $39,857; and according to the U.S. Department of Labor, the average farmworker earns between $15,000 to $17,499 a year.

Here are just a view of the professions included in the service sector:

  • Housekeepers
  • Teachers
  • Restaurant staff
  • Agricultural workers
  • Mechanics
  • Hotel Staff
  • Retail workers

If you add up the average cost of living, the reason so many service workers do not have healthcare for themselves or their families comes sharply into focus. The average American spends $7,700 on groceries and eating out each year. According to the U.S. Department of Agriculture guidelines for a moderate budget, a family of four spends between $10,680 to $12,744 on food annually, according to the U.S. Department of Agriculture guidelines.

If you’re fortunate enough to be a homeowner, the average mortgage with 10 percent down runs about $14,000 annually. The cost of rent varies by region but averages $600 to $1500 per month in the U.S., or $7,200 to $18,000 each year. That is already about $20,000 annually for food and housing alone. Add in the cost of transportation and everything else required to maintain a household, and you’ve already swallowed up the income of a large segment of those employed within the service sector.

The Cost of Healthcare

Many restaurants, retail, hotel, agricultural workers, and other service employees are not offered health benefits from their employers. For those who do have the option, some still cannot afford to enroll or utilize their health plans due to high premiums and deductibles.

A single person with employer health coverage earning an annual salary of $50,000 spends, on average, $5,250, approximately 11 percent of his income on health care. This expense includes $800 per year in out-of-pocket costs, a $1,400 premium contribution, and $3,050 in state and federal taxes to fund health programs. If a single person earning an annual salary of $50,000 enrolls in coverage on the individual market instead of through his employer, he can expect to spend 20 percent of his income on health care.

A family of four in good health with employer-sponsored coverage and earning a reasonable salary spends about 12 percent of income on healthcare. If the health of at least one family member worsens, household health spending increases to 15 percent of their income.

The Cost of Not Having Healthcare

The Institute of Medicine found that uninsured adults in the U.S. have less access to recommended care, receive poorer quality of care, and experience worse health outcomes than insured adults do.

Studies show the uninsured are less likely than those with insurance to receive preventive care and services for major health conditions and chronic diseases. Twenty-one percent of nonelderly adults without coverage said that they went without needed care in the past year because of the cost, compared to 4 percent of adults with private coverage and 7 percent with public coverage.

An Affordable New Solution

Unfortunately, many in the service sector do not know about direct primary care and how affordable it is for families to get the healthcare they need to maintain good health. Recently, benefits brokers nationwide have endeavored to educate service employers and employees about the benefits of DPC, such as:

  • Unlimited virtual DPC/telehealth
  • Unlimited doctor visits for low or no visit fees
  • Unlimited chronic disease management
  • Unlimited urgent care for a small fee
  • Annual physicals for no out-of-pocket cost
  • Recommendations for generic pharmaceuticals

Direct primary care (DPC) is different than health insurance for several reasons. First, it is not insurance, so there is no expensive monthly premium deducted each pay period. Second, there are no high deductibles to meet before insurance coverage kicks in. With a DPC membership, employees and their dependents pay a low monthly fee for unlimited access to primary care.

The need for healthcare is vast among those who serve us every day. The everyday heroes who keep our transportation, food, schools, and households going must be educated on their healthcare options and should be offered the benefits of affordable and convenient access to primary care.

If you’d like more information about how you can bring DPC to the service sector, contact Healthcare2U about their Minimum Essential Coverage partnership with Pan-American Life Insurance Group; or download information on their Limited Indemnity plan here

share this post

Other Posts You Might Like

  • Blog Posts

    Nextgen Solutions to Keep Families Healthy
  • Blog Posts

    The Future of Primary Care [ How the Primary Care Landscape is Adapting to a Mobile Workforce ]
  • Blog Posts

    The ABCs of DPC – The Building Blocks of Healthcare [ What is Direct Primary Care and Why is it Important? ]
  • Blog Posts

    Caregiver Burnout: Tips for Self-Care [How to care for yourself so you can care for others]
  • Blog Posts

    Optimal Cholesterol Levels Help Maintain Optimal Health
  • Blog Posts

    Celebrating Women’s Contributions to Healthcare
  • Blog Posts

    Healthcare for the Service Sector
  • Blog Posts

    Prepare for a New Normal
  • Blog Posts

    Tips for a Happy and Healthy Summer
  • Blog Posts

    A Solution for Disparities in Healthcare
  • Blog Posts

    3 Ways Artificial Intelligence is Changing Healthcare
  • Blog Posts

    Prevention is the Best Strategy for Chronic Disease
  • Blog Posts

    Healthcare2U Launches Redesigned Website to Better Support Brokers, Employers and Members
  • Blog Posts

    Doctors Love Direct Primary Care
  • Blog Posts

    Is There Such a Thing as Balance?
  • Blog Posts

    Men Visit the Doctor Less Than Women
  • Blog Posts

    Hidden Causes of Hypertension
  • Blog Posts

    Solutions for Anxiety and Depression
  • Blog Posts

    The Importance of Primary Care
  • Blog Posts

    DPC Will Be Crucial for Health Plans Going Forward
  • Blog Posts

    Tips to Stay Fit at Home
  • Blog Posts

    The Connection Between Health and Friendship
  • Blog Posts

    Stress Relief in Times of Uncertainty
  • Blog Posts

    3 Powerful Ways to Boost Your Immune System
  • Blog Posts

    COVID-19: Tips to Stay Safe and Healthy
  • Blog Posts

    How Employee Burnout Increases Healthcare Costs
  • Blog Posts

    Coronavirus: Stay Calm and Aware, But Don’t Panic
  • Blog Posts

    The Link Between Technology and Depression
  • Blog Posts

    Finding Solutions for Surprise Medical Billing
  • Blog Posts

    3 Ways Love Can Improve Your Health
  • Blog Posts

    How Physical Fitness Benefits Mental Health
  • Blog Posts

    Tips for a Happy and Healthy Holiday Season
  • Blog Posts

    Five Ways to Reduce The Risk of Back Pain
  • Blog Posts

    Five Factors Contributing to Childhood Obesity
  • Blog Posts

    Five Things Employers Should Consider When Looking for a Direct Primary Care Provider
  • Blog Posts

    National Women’s History Month: Five Influential Women in Medicine
  • Blog Posts

    Heart Failure Awareness Week
  • Blog Posts

    Our Hearts are Healthier Together
  • Blog Posts

    Employers Seek Alternative Solutions to Solve Rising Benefit Plan Costs
  • Blog Posts

    The Real Impact of Chronic Diseases in America
  • Blog Posts

    Conquering Your New Year’s Resolutions
  • Blog Posts

    Winter Wellness
  • Blog Posts

    Employer Provided Healthcare Isn’t Making the Cut
  • Blog Posts

    Breast Cancer Research: The Breakthroughs of Today for Those Diagnosed Tomorrow
  • Blog Posts

    Breast Cancer Facts and Myths
  • Blog Posts

    Fighting a Killer
  • Blog Posts

    7 Ways to Celebrate Women’s Health & Fitness Day
  • Blog Posts

    The Fight Against Childhood Obesity
  • Blog Posts

    Five Tips to Prepare for a Healthier School Year
  • Blog Posts

    Sticking to a Healthy Eating Plan over the Holidays and into the New Year
  • Blog Posts

    Focus on Diabetes – Preventing a Killer
  • Blog Posts

    Direct Primary Care Delivering Lower Costs, Better Patient Experience
  • Blog Posts

    Savings 101: Healthcare strategies for self-funded companies
  • Blog Posts

    Embarking on a Path to Health and Wellness
  • Blog Posts

    The Rise of Telemedicine
  • Blog Posts

    What is a Healthcare Advocate?
  • CONTACT US

    BECOME A PART OF THE SOLUTION

    Redefine the healthcare experience with No-Claims Healthcare™

    Contact us