Health care costs are a top concern for Americans, more so than inflation, according to a survey from Primerica. This is in large part because of the pandemic and the current economic climate, which has left many Americans with reduced incomes and increased medical bills.
Primerica’s “Middle-Income Financial Security Monitor” report surveyed 1,471 Americans, making between $30,000 and $100,000 annually, about their households’ financial health.
The study found that 40% of respondents have either postponed going to a doctor or dentist—or have just forgone it altogether—because of cost.
Health spending in the U.S. has grown steadily over time, driven by various factors such as new technologies, aging population, chronic diseases, administrative costs, market power, and inefficiencies. Between 1980 and 2018, health care spending per person increased by 290% in real terms. The growth rate has fluctuated over the years, depending on economic conditions, policy changes, and pandemic-related factors. But it’s the highest in the U.S. compared to other developed countries.
According to Kaiser Health News, 40% of adults report going into debt due to medical or dental bills. Approximately one third of insured adults worry about paying their monthly health insurance premium.
The high cost of health care in the U.S. is a long-standing economic issue that has been further exacerbated by the COVID-19 pandemic. The Primerica survey highlights the financial burden that health care costs pose for middle-income Americans.
Increased health care costs also have a direct impact on inflation, as healthcare spending is a major component of the Consumer Price Index (CPI), a measure of inflation. As health care costs continue to rise, it puts upward pressure on the CPI, leading to an overall increase in inflation.
Moreover, health care costs have a significant impact on businesses and the economy as a whole—rising costs make it difficult for businesses to offer competitive employee benefits.
Addressing this issue requires a multifaceted approach that focuses on the underlying drivers of cost growth, such as inefficiencies in the health care system and market power of health care providers, as well as implementing policies to increase access to affordable health care.