#United States #Columbus #Medical Debt #Health Insurance #Preventive Care

Rising Health Care Costs Compel Insured Americans to Forgo Preventive Services

As debates about health insurance accessibility rage on, rising health care costs are severely affecting even those who are insured. A recent survey conducted by the Nationwide Retirement Institute sheds light on an alarming trend: many insured Americans are postponing routine medical care due to increasing expenses.

The Financial Pressure of Health Care Costs

Nearly 40% of insured adults report refraining from medical visits when feeling unwell, citing cost concerns as their main reason. Of those surveyed, a staggering 41% have chosen to miss healthcare appointments within the past year due to the financial burden. The financial toll is not restricted to immediate medical visits but extends to preventative services that can help identify health issues before they escalate. For instance, over the last year:
- 23% of participants postponed dental cleanings
- 20% skipped vision tests
- 17% decided against seeing a specialist
- 16% put off mental health care

Though these decisions might seem financially sound in the short term, the consequences could lead to worse health and financial repercussions as individuals reach retirement.

Soaring Insurance Premiums

While many Americans scale back on essential care, the price of maintaining insurance coverage is rising steadily. In 2025, the expected increase for single policy coverage is about 5%, while family plan costs are projected to rise 6%. The expiration of temporary Affordable Care Act tax credits will only exacerbate the issue, leading to a spike in premium costs. This financial squeeze implies that not only are households required to pay more for their coverage, but the extent of their insurance coverage has also decreased substantially.

Americans face a paradox: higher premiums coupled with mounting out-of-pocket costs means they are spending more upfront while still accruing unaffordable medical bills. Nearly 18% have resorted to using credit cards or accumulating medical debt to cover immediate health expenses. Additionally, 31% indicated they would struggle to manage an unexpected $500 medical bill.

The Challenge of High-Cost Medications

To add to the burden, the introduction of high-cost medications, especially drugs like GLP-1 for diabetes and weight management, presents another layer of financial strain. Many Americans who could greatly benefit from these medications find themselves facing steep out-of-pocket costs that are prohibitive, further widening the gap between what insurance covers and what patients have to pay.

Retirement Fears Due to Health Costs

The rising costs of healthcare are inherently linked with growing worries about financial security in retirement. The survey highlights several alarming statistics:

• - 73% of U.S. adults express that escalating health care expenses are one of their largest retirement fears.
• - 71% fear the potential impact of these costs on their retirement savings.
• - More than half reported that health expenses have dramatically curtailed their ability to save for retirement.
• - 68% worry that a significant health event could jeopardize their financial stability for years to come.

Despite these fears, a striking 59% feel unprepared to budget for healthcare costs in retirement, with two-thirds unable to estimate how much they will spend on healthcare throughout their retirement. A bit more than one-third has either not established or is unaware of how to plan effectively for anticipated medical expenses. This lack of preparedness extends to safety net programs like Medicare; many believe Medicare should cover unforeseen long-term care expenses, a misconception that leaves them at risk of significant out-of-pocket costs.

The Role of Financial Advisors

In light of these findings, the need for guidance from financial professionals is critical. Americans who engage with financial advisors are noticeably more confident in their healthcare planning than those who do it independently. Notably, 42% of individuals not paying for advisory services lack understanding about Medicare’s coverage, compared to a mere 21% among those with advisors. However, there is ample room for improvement; over half of those working with financial professionals have not sought advice about Medicare benefits.

Rodriguez emphasizes, “Now is the time to close the gap between concern and action,” encouraging financial advisors to help clients navigate the intricate relationship between health and wealth.

Through tools like Nationwide's Health Care Cost Assessment, financial advisors can take actionable steps to prepare clients for future healthcare expenses by employing risk analysis and updated actuarial data.

In conclusion, as healthcare costs continue to rise, it is imperative for insured individuals to seek guidance to navigate their healthcare expenses effectively. By understanding the intricate connections between health and wealth, they can better prepare themselves for a more secure retirement.