Digital health (Image: Shutterstock)

The pandemic and uncertain economic times are affecting consumer decisions about how, when and where to spend their health care dollars

"The direction of tax-advantaged consumer-directed health care accounts has been changing in the face of evolving technologies, shifting economic conditions and the COVID-19 pandemic," according to a new white paper from DataPath. "The last two years have changed our tolerance for risk, how we evaluate and act on our needs, and our entire spectrum of purchasing behaviors. For example, 8 out of 10 people say their shopping habits have changed. We now focus more on value-based purchasing and shop online more than ever. Health care has been affected by a similar trend."

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DataPath researchers cite several key takeaway messages from their study:

  • Consumers who altered how they manage their health care during the pandemic likely will retain those behavioral changes.
  • Millions of consumers attempt to avoid severe illness and manage chronic health conditions using body patches, smartwatches and similar digital devices. Nearly 1 in 7 American adults now own a smartwatch, and about 1 in 7 of those bought their device during the pandemic.
  • Clinicians maintain a lingering skepticism toward digital wellness devices. Only 10% of doctors have integrated data from patient wearables into electronic health records.
  • Consumers now look at wellness as including six dimensions — better health, better fitness, better nutrition, better appearance, better sleep and better mindfulness.
  • Consumers are lagging in mobile app adoption because of fears about the privacy of their health care information. However, they are significantly more likely to use a health care app if it is specifically recommended by their provider or if convinced it would result in better information about their health.
  • Although not specifically a response to digital health care, the rise in ICHRAs intersects with the rise of consumer engagement in personal health care.
  • A major reason for the growth in lifestyle spending accounts, despite their post-tax status, is the lack of regulatory restrictions. This enables employers to address all six dimensions of wellness with a single benefit account and start the plan at any point in the calendar year.
  • Expenses eligible for reimbursement under existing tax-advantaged accounts — FSAs, HRAs and HSAs – will continue evolving in response to the growth in digital technologies.

Related: Unlocking the full potential of digital health benefits for employees

"When you look at the whole picture, it makes for a fascinating conversation," says Bo Armstrong, chief marketing officer for DataPath.

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Alan Goforth

Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.