David Fike on how Zurich’s Life, Accident & Health business can help solve the growing financial healthcare burden on Americans

David Fike is the Head of Life, Accident & Health for Zurich North America, where he is responsible for the direction, management and performance of these businesses. Fike took some time out recently to discuss the importance of addressing growing concerns around healthcare costs.

Q: What are the biggest challenges facing Americans when it comes to their health and wellness?  

A: I see two primary issues related to healthcare — affordability and access. In a recent study, individuals listed cost, bureaucracy and access to treatment as some of the top concerns facing the U.S. healthcare system. This comes as no surprise, as the burden of healthcare continues to shift to individuals. People are increasingly responsible for larger and larger portions of their medical expenses. Deductibles have nearly doubled over the past decade, and Americans continue to go into debt over out-of-pocket medical expenses. Right now, there is over $140 billion of medical debt in the United States and 40% of U.S. consumers are unable to afford a $400 out-of-pocket medical expense. Bottom line: paying for healthcare can break the bank.

Zurich is focused on finding ways to ease this financial burden for Americans. We may not have all the answers today, but we are asking the right questions to help lift the cloud over many people struggling to pay for health care. Our role in the journey to solving healthcare begins with addressing a top concern for Americans — providing products and solutions that can help manage those significant out-of-pocket expenses. We’re confident we can create a brighter future for American seeking affordable, quality health care.

Q: How is Zurich helping ease the financial burden of healthcare?

A: We’re doing a number of things: First, we looked across Zurich and saw a natural fit between our Life and Accident & Health businesses. We combined these two businesses last year and created one unit. Having access to both Life and Health, as well as Property and Casualty paper, helps protect our customers through a variety of insurance solutions ranging from life, health, wellness and travel, for example.

To specifically help consumers struggling to pay for healthcare expenses, we offer supplemental health benefits that help limit exposure to out-of-pocket medical expenses through employer groups and member associations.

For example, one benefit many consumers with high-deductible plans should consider is called Accident Medical Expense (AME). It works by reimbursing the consumer for out-of-pocket medical expenses that result from an accident, while also helping them shrink their deductible. Accidents happen … this coverage can help consumers bounce back and heal. True story: a neighbor of mine was cleaning the area under his deck when a bat flew out of the corner and collided with his head, leaving a small scratch. He went to the emergency room and two hours later left with an $800 out-of-pocket expense due to his major medical plan having a $2,500 deductible. Had he purchased an AME product, he would have been fully reimbursed for the incident and reduced his annual deductible by $800.  

Another supplemental health benefit consumers with high-deductible plans should consider is called Hospital Indemnity. It pays the consumer directly, so they have less of a financial shock from an unexpected sickness or accident. It can be used for anything to help with caregiving, hospital bills or even delivery services. It allows individuals to stress less about their finances and focus more on getting better.

Accident Medical Expense and Hospital Indemnity are just two of many supplemental benefits available to help offset the costs associated with a high-deductible medical plan.

Q: Many workers who opted to work in non-traditional jobs, such as working with gig platforms, after the pandemic are now struggling to access healthcare. How is Zurich helping provide access to health and wellness services to this growing population of workers in America?

A: The pandemic changed the way many people think about work and how they work. There are 51 million non-traditional workers in the United States, and the gig economy is expanding much more rapidly than the U.S. economy as a whole. 

But as we see the number of gig workers expanding, they still face issues with access and affordability when it comes to healthcare. 43% of gig workers worry about medical expenses due to injury or illness. Many are on self-purchased health insurance plans which provide access to healthcare, but with deductibles that could go as high as approximately $10,000. Yet 80% of people who primarily rely on gig work for their source of income say that an unexpected expense of $1,000 would be difficult to afford.  We’re starting to raise awareness of the different types of health and wellness solutions available to gig workers. For example, we offer several different types of coverages specifically for gig workers today while they are at work. We’re not just looking at how we can provide access to these solutions, but also how we can make them affordable. 

Q: What is your vision for helping Americans struggling to pay for healthcare?

A: My vision for the future of healthcare can best be articulated by looking back at how Americans accumulated $140 billion in medical debt. I’ll know we’ve succeeded when Zurich can confidently say we contributed to the solution. Right now, the best solution a person is offered, if they can’t afford out-of- pocket medical expenses, is a high-interest financing option. We want to help bridge the gap that exists in healthcare by providing relief, encouraging people to seek care without delay and knowing that they’ll be covered. We’ll get there by continuing to ask the right questions and deliver better solutions that can help protect Americans’ lives and livelihood.

Click here for more information about Zurich’s Accident & Health insurance.