Impact of Medical Debt on Insured Employees

1 minute read

Despite competitive health care benefits, many employees still face medical debt. Over 40% reported experiencing this issue, as per a survey by Goodroot.

Medical Debt in the U.S.

In 2023, employers spent an average of $17,393 for family coverage per employee, a 48% increase since 2013. Despite increased investment in health care benefits, employees still encounter medical debt. Here are some of the key survey findings from Goodroot:

• 52% of Americans owe more than $2,500
• At some point, nearly 4 in 10 people have been unable to afford rent, groceries, or utilities due to medical bills
• 86% of Americans who have experienced medical debt delayed care due to the expected cost
• Employees aged 42 or under with medical debt owe more than $2,500, compared to 45% of workers aged 43 or older

Employees may not realize financial assistance is available. Hospitals are required to provide community benefits, like free or reduced-cost urgent and necessary medical care for patients unable to pay. However, each hospital has its own financial aid policy, eligibility criteria, and forms, which can confuse patients.

Employer Takeaway

Medical debt is impacting many Americans. Employers can assist by incorporating hospital financial aid into health benefits. Some employers also offer a health-cost navigator to help employees understand and utilize benefits effectively. Employers should stay updated on healthcare and benefits trends. Download the bulletin for more details.