High inflation hits health care: Americans skimping on critical treatment, meds
Many have cancelled or postponed plans in the past year to see a specialist, take a prescribed medication or get an annual physical – and 14% are considering downgrading their health insurance, says a new report.
Although inflation numbers have dipped ever so slightly in the latest economic reports, Americans are still struggling with high prices not seen in a generation or more.
Unfortunately this leads to unwanted health choices and a new Nationwide Retirement Institute survey (also see Nationwide infographic below) of 1,140 adults in the U.S. shows that over the last 12 months, nearly two in five American households (40%) received food or goods from a food bank (22% for millennials), and the same amount (17%) stopped buying healthier foods (organic or high-priced healthy foods).
“As the price of health care and basic necessities continue to reach record highs, Americans have been forced to make tough decisions that sacrifice their health and wellbeing,” said Kristi Rodriguez, senior vice president of the Nationwide Retirement Institute.
Nearly one in five Americans (18%) say they skipped meals or didn’t buy groceries due to high inflation (including 28% of Gen Z and 23% of millennials). As food insecurity deepens, Americans are also struggling to pay for critical health care expenses. Many have cancelled or postponed plans in the past 12 months to see a specialist (14%), take a prescribed medication (10%) or get an annual physical (11%) due to high inflation. Almost one-fifth of Gen Z (17%) and millennials (19%) have cancelled or postponed plans in the past 12 months to see a mental health professional.
To find additional savings, 14% of Americans say they are considering downgrading their health insurance plan because of high inflation, which rises to 23% and 20% for Gen Z and millennials, respectively.
Related: State of the American worker: 38% lack medical insurance; more lack dental and vision care
Also, looking for savings is not relegated to immediate health choices. Americans are also deferring savings for future retirement in order to make ends meet. To find additional savings, consumers are sacrificing other areas of their employer-sponsored benefits due to health care expenses:
- 1 in 10 adults have decreased their retirement plan contributions in the past year to pay for health care expenses.
- Another 14% of adults are considering decreasing their contributions this year. This figure is also higher for Gen Z and millennials at 21% and 20%, respectively.
Says Rodriquez: “While these decisions are understandable and challenging, making short-term trade-offs may have long-term impacts. Neglecting your health now can lead to far bigger costs as you age and approach retirement. This is such a critical time to consult with a financial professional to create a plan that prioritizes your health care needs now and in retirement.”