Paying for the steadily rising cost of medical care can be challenging, even for Americans with health insurance. Although insurance helps defray medical expenses, it doesn’t cover everything, so even those consumers with insurance may have to make hard choices about which bills to pay. These choices may not only lead to poorer health outcomes but also to financial strain from medical debt.
According to a new survey by ValuePenguin, 32% of Americans with health insurance have also accumulated medical debt. Almost half of insured individuals with children under 18 have taken on debt to pay for medical care.
Due to these skyrocketing costs, some are considering other ways to pay for medical care, such as borrowing from loved ones, buying travel health insurance, or even leaving the United States for a country with more affordable healthcare. Furthermore, more than one-third of insured individuals have considered dropping their health insurance coverage, including up to two-thirds of Generation Z, those in their late teens and early twenties. About 20% of Americans who currently have insurance have dropped their coverage in the past.
These high costs have also led to about 29% of individuals delaying or avoiding medical care, and about 25% splitting pills, skipping doses, or simply not filling prescriptions. About 34% of those who have both insurance and children skip their own medical needs to pay for their children’s care. Almost 50% of Americans have adjusted their budgets to afford health insurance, such as slashing spending on food and household items, foregoing family and personal expenditures, and not making payments on debts.
Nonetheless, consumers can take some action to help manage rising health insurance costs. For instance, individuals can consider different coverage options during open enrollment, such as choosing a network-based plan, opting for a high-deductible plan with a health savings account, exploring Affordable Care Act (ACA) subsidies, and purchasing coverage to meet anticipated medical needs. By following these steps, consumers can control their health insurance costs while still protecting themselves from unexpected, high medical bills.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
