Consumers brace for increased health care costs in 2021

Health care is top of mind for most Americans this year, and six in 10 say they are financially prepared for an expected increase in costs in 2021. RxSaver recently surveyed consumers about health-care costs, and this is what they found.

Costs vary by age and geography. Medication costs have affected the population differently, depending on age and location. Twenty-three percent of Millennials and 22% of Gen Xers reported more changes to their prescription medication costs this year, while only 12% of Boomers experienced any changes at all. Government programs such as Medicare and Medicaid account for coverage that 42% of the population relies on, with the majority made up of Boomers enrolled in Medicare.

Related: Costs for common health services far outpace inflation, vary from city to city

Where people live also affects how much they spend on medications. Eighteen percent of those living on the West Coast reported a plan to spend more on prescriptions in 2021, while only 10% of the Northeast and 11% of the Midwest anticipated a bump in cost

Personal health hygiene is becoming more important. Consumers know they can’t rely on things to stay certain for long, so planning ahead is more critical than ever this year. More than 40%now place greater emphasis on maintaining their health. General best practices when it comes to cleaning and taking care of one’s own health have grown. Nearly 64% of Americans said they focus more heavily on cleanliness best practices than they had previously, and 16%  have been seeing a health-care provider more often than before.

Consumers know how to save on medications. Although many factors have been out of people’s control this year, it’s evident that Americans are thinking about how their medications will factor into overall health-care costs. Eight in 10 plan to spend roughly as much or more on medication in 2021 as they did in 2020. This means they already are tracking how much their prescriptions cost and what they should anticipate for next year. Only 18% of Americans suspect they will pay less in the new year.

Even though prices are rising with prescription costs, Americans are becoming savvier when it comes to saving on their medications through deals or discounts to help offset rising prescription prices. Usage increases also likely are driven by disruptions to insurance in the pandemic, along with insured people seeking a lower out-of-pocket price than their copay.

“As more Americans plan for rising prescription costs in 2021, RxSaver remains focused on our mission of making health care affordable,” said Kim Read, senior vice president and general manager of RxSaver. “We know that access to savings tools like ours is critical as consumers continue to navigate unprecedented challenges in the coming year.”

Read more: 

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• More states turning to ‘Medicare-based contracting’ for employee health care
• Indiana employer group’s research shines a light on price transparency