1.5 minute read
According to a Kaiser Family Foundation report, over 100 million Americans have medical debt, most of which comes in the form of family loans, credit card balances, or payment plans to hospitals and providers. More than half of adults in the U.S. have gone into medical debt in the past five years. One quarter of those owe more than $5,000, and 1 in 8 owe more than $10,000.
Many people don’t have the money to cover unexpected medical bills and many medical balances go unpaid. Paying these bills may lead to people making sacrifices. The report found that 63% of people had to cut spending on food and other basics, and 48% used up all or most of their savings to pay back their debt.
This suffering takes a toll on an employee’s physical well-being as well as their mental health. And when an employee suffers, the workplace does too.
Employers can help prevent medical debt among their employees by:
- Reviewing health plans to ensure maximum affordability for all employees
- Offering benefits to help employees manage costs, such as a health savings account or financial wellness programs
- Conducting training to educate employees on how to be better consumers of health care
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