HSAs, anyone? Health care costs are projected to rise over the next decade “at an average rate of 5.5 percent per year from 2018-2027 and to reach nearly $6 trillion by 2027,” according to The Centers for Medicare and Medicaid Services.
It’s the reason health care is—by far—the most popular employee benefit.
And now a new study from HSA provider Lively finds that as medical costs rise, individuals and families across America are making financial decisions that directly impact their physical health: from choosing a health insurance plan, to postponing a doctor’s visit, to foregoing a recommended medical treatment.
Indeed:
- Out of 11 popular employee benefits, including competitive salary and 401k, almost 40 percent of employees chose health care as the most important benefit when thinking of switching jobs or staying at a job.
- The majority of Americans (76 percent) rank health care in their top three priorities when considering workplace benefits.
Only half of adults go to the doctor regularly or preventatively
- As adults get older, they are more likely to go to a doctor regularly or preventatively—and conversely, younger adults are more likely to only go to a doctor when something catastrophic happens.
- Men, married people, and wealthier consumers are more likely to see a doctor preventatively, while people with children are more likely to only go to the doctor when they are sick.
“The results of the report show that, despite a strong economy, Americans are not able to make the best health care choices for themselves due to their financial situations,” Shobin Uralil, co-founder and COO of Lively, said in a statement. “The fact that nearly half of Americans forego preventative care due to cost proves that something is lacking in our health care system, and employers should take note. As the number one priority for employees when considering jobs, health care benefits should be top of mind in every workplace.”
Medical and health care costs come as a surprise to a large portion of employees
- Three in four Americans are surprised by how high their medical bills are when they receive them.
- One in three employees are unsure how much of their paycheck goes to health care costs (including health insurance and out-of-pocket costs).
Employees have a mixed understanding of their employer benefits
- While close to a third of people surveyed do not have health benefits through an employer, the majority of those who do say they understand their benefits.
- Although employees report the best understanding of 401(k)s as a benefit, less than 50 percent completely understand them.
- Less than 1 in 3 Americans completely understand any of the following health care terms:
- Flexible Spending Account (FSA)
- Health Maintenance Organization (HMO)
- Health Reimbursement Arrangement (HRA)
- Health Savings Account (HSA)
- High Deductible Health Plan (HDHP)
- Preferred Provider Organization (PPO)
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
