Medical expenses dampen holiday cheer for many families
The pandemic has increased the number of Americans dealing with health care costs in the past year, which may lead to some tough choices.
Although the holidays typically are one of the most joyous times of the year, it also can be a time of great stress for some families.
Many American households struggle to pay for medical expenses, forcing some to make difficult decisions. These choices include working more, forgoing medical care and cutting back on holiday spending, according to the 2021 Aflac Health Care Issues Survey.
“The study paints a picture of resourcefulness and sacrifice, with certain households reporting that they had to take extra shifts at work, dip into their 401(k) accounts and even delay medical treatment for themselves,” said Jeramy Tipton, senior vice president, distribution expansion and consumer markets, for Aflac. “We also found that households with health insurance are not immune from having to cope with significant out-of-pocket health care expenses.”
Households that have experienced a COVID-19 diagnosis since the start of the pandemic are far more likely to have faced high out-of-pocket costs. Most notably:
- Almost two-thirds had out-of-pocket health care expenses in the last 12 months, compared to 45% of other American households.
- Nearly a quarter reported more than $1,500 in out-of-pocket expenses vs. 16% of non-COVID-19 households.
- These families were three times more likely to have taken money out of their 401(k) or other retirement funds; twice as likely to have borrowed money from a friend or family; and three times as likely to have filed for bankruptcy compared to families that did not experience COVID-19.
The most common cost-saving actions Americans expect or have taken leading up to this holiday season include:
- Reducing overall holiday spending on gifts and/or decorations (41%).
- Canceling holiday travel plans (40%).
- Canceling holiday events (37%).
Roughly half of households with health insurance still reported out-of-pocket medical costs. In about one-fifth of these cases, insured households faced medical costs exceeding $1,500. The survey also found that households with children make more sacrifices to maintain holiday cheer
“Throughout the pandemic, parents have been confronted with hard decisions on how to best care for their children,” Tipton said. “The survey shows high health care costs are forcing parents to make even more sacrifices this holiday season on top of everything they already do for their families year-round.” ###