Employees Are Still Not Ready for Unexpected Medical Expenses

Wed, 06 March 2024  |  financial wellbeing 

A recent survey conducted by New York Life Group Benefit Solutions among U.S. adults with employer-sponsored health insurance shows that many feel financially unprepared to handle medical costs. This financial burden has led some to delay care as a result, underscoring a widespread need for additional financial protection solutions.

Survey participants reported notable concerns when it comes to their ability to manage healthcare expenses. A substantial 72% of respondents expressed a desire for lower out-of-pocket healthcare expenses, reflecting the broader sentiment that healthcare costs are increasingly becoming a financial burden.

Key findings of the survey include:

• Growing Concern Over Increasing Expenses: Half of adults surveyed said they are covering more out-of-pocket costs now than in the past.
• Delay in Medical Treatment Due to Costs: 57% of adults surveyed said they have delayed medical treatment with concerns around their ability to pay for medical expenses being the top reason. Of note, 70% of millennials reported delaying medical treatment, with concerns around their ability to pay being the leading reason.
• Lack of Preparedness: 4-in-10 adults (41%) do not feel prepared to face an unexpected out-of-pocket medical expense. While almost 7-in-10 men (69%) feel prepared to face an out-of-pocket medical cost, in contrast, less than half of women (49%) feel the same way.
• Unexpected Healthcare Costs are Placing Many Deeper in Debt: 44% of adults say they would have to take on additional debt to cover an unexpected medical cost, primarily using credit cards (44%) and payment plans (46%).
• Confusion Around Existing Medical Coverage: 1-in-3 adults do not fully understand what their health insurance plan covers, indicating a need for improved educational resources on the specifics of medical coverage and assistance selecting benefits that can help fill gaps in coverage.