April is National Financial Capability Month. Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Organizations across the country conduct a variety of initiatives designed to improve financial literacy and promote financial well-being for all consumers.

Health insurance literacy (HIL) is defined as a person’s ability to seek, obtain, and understand health insurance plans, and once enrolled use their insurance to seek appropriate health care services.

Why are financial literacy and HIL so important? According to Heath Carelock, Program Director, Financial Empowerment Center at Prince George’s County Community College and a community partner, they both work together.

“Nothing affects life more than the financial decisions that are made,” says Carelock, “especially those related to health care. One’s health is tied to one’s wealth. The inability to manage resources can rob individuals of living life joyfully.”

The lack of financial literacy can lead to large amounts of debt and poor financial decisions, including bankruptcy. Low HIL coupled with complex health plan rules presents a barrier to care and put minorities at constant risk for unpredictable financial liabilities.

Studies indicate that differences in HIL contribute to healthcare disparities, particularly amongst people of color, as a result of delayed care or unanticipated medical bills. Not understanding HIL diminishes the practical value of health insurance and exacerbates perceptions of health insurance as “not necessary”.

Prince George’s County Health Connect, a program of the Department of Social Services (DSS), provides education, outreach and health insurance enrollment. Certified navigators work one on one to provide education on health insurance benefits, including information on affordable plans, how it can work for an individual’s budget, and other health access issues.

Call PGC Health Connect  today. To speak with a navigator by telephone, call the Prince George’s County Health Connect Call Centers, (301) 927-4500, (240) 719-2167 or its partner, CASA Bi-Lingual Hotline at (301) 270-8432, Monday through Friday, from 9 am to 4 pm. All information is confidential.

To learn more about financial educational programs and services available at the Financial Empowerment Center at Prince George’s County College, go to http://bitly.com/fec-signup | http://bitly.com/fecpgcc-coaching | Email FEC@PGGC.edu | Website http://pgcc.edu/go/fec