Americans confident in health care choices, but concerned about costs

Thirty-six percent of respondents said they were unsure how they’d pay for health care during retirement.

Last week, HSA Bank, a division of Webster Bank, N.A., released its seventh annual HSA Bank Health & Wealth IndexSM. The study, which polled more than 2,000 randomly selected U.S. adults, gives important insights into consumers’ desires, frustrations, and habits related to health care and financial matters.

According to the report, most consumers know what they want when it comes to health care. Eighty-four percent of respondents said they were confident in choosing the right health care plan. Unfortunately, 35% of respondents also indicated concerns in how they’d pay for health care costs over the next year. Thirty-six percent said they were unsure how they’d pay for health care during retirement.

Consumers continue to be moderately engaged in health and wealth activities, the consumer index score falling from 56.6% in 2023 to 55.5% this year.

It should come as no surprise to those who follow the industry that respondent answers to different questions differed across age demographics. Gen-Z (46%) and millennials (45%) were much more likely to report money impacting their mental health than Gen-X and baby boomers. Likewise, Gen-Z (33%) and millennials (29%) reported workplace stress more than Gen-X (21%) and baby boomers (5%).

Related: Employers expect 2025 health care cost trends to rise 8%

According to the study, a large minority of consumers rely on alternative medicine. Twenty-four percent of respondents reported researching their symptoms and treatments instead of visiting a doctor. Further, 28% said they would try natural or herbal remedies due to rising health care costs.

On a positive note, the majority of respondents appear to have made smart financial decisions. Sixty-nine percent said they’d made changes to improve their wealth and finances. Of that group, 45% made a budget, 41% paid off debt, 33% invested their savings, and 27% specifically saved for an emergency.

Commenting on the study’s findings, Chad Wilkins, President of HSA Bank, urged employers to do more for their workers. “This year’s Health & Wealth Index found that consumers remain focused on improving their overall wellbeing, placing more attention on mental health and methods to improve their finances. It’s clear there is still more work that employers can do to better ease health and wealth challenges that their employees face,” said Wilkins.