COLUMBUS, Ga., Dec. 2, 2021 /PRNewswire/ -- Many American
households struggle to pay for medical expenses, forcing some to
make difficult decisions. According to the 2021 Aflac Health Care
Issues Survey released today, these choices include working more,
forgoing medical care, cutting back on holiday spending and more.
Even with health insurance, families that experienced COVID-19 and
those with children are especially hard hit. With the latest
Centers for Disease Control and
Prevention data indicating more than 45 million Americans
tested positive for COVID-19 since the pandemic began, millions of
households may be facing similar financial challenges, especially
as the holiday season approaches.
"The study paints a picture of resourcefulness and sacrifice
with certain households reporting that they had to take extra
shifts at work, dip into their 401(k) accounts and even delay
medical treatment for themselves," said Jeramy Tipton, senior vice president,
Distribution Expansion and Consumer Markets at Aflac. "We also
found that households with health insurance are not immune from
having to cope with significant out-of-pocket health care
expenses."
COVID-19 contributing to increased financial stress
According to the Aflac study, households that have experienced a
COVID-19 diagnosis since the start of the pandemic are far more
likely to have experienced high out-of-pocket costs. Most
notably:
- Nearly two-thirds (64%) had out-of-pocket health care expenses
in the last 12 months, compared to 45% of other American
households.
- Nearly a quarter (23%) reported more than $1,500 in out-of-pocket expenses versus 16% of
non-COVID-19 households.
- These families were three times more likely to have taken money
out of their 401(k) or other retirement funds, twice as likely to
have borrowed money from a friend or family, and three times as
likely to have filed for bankruptcy compared to families that did
not experience COVID-19.
Financial challenges are also putting a damper on holiday cheer.
More than half (60%) of American households that experienced a
COVID-19 diagnosis expect to be affected this holiday season out of
concern about health care expenses. The most common cost-saving
actions Americans expect or have taken leading up to this holiday
season include:
- Reducing overall holiday spending on gifts and/or décorations
(41%).
- Canceling holiday travel plans to see friends and/or family
(40%).
- Canceling holiday events (37%).
Even the insured feel the pinch
Roughly half (51%) of
households with health insurance still reported out-of-pocket
medical costs. And in roughly one-fifth (19%) of these cases,
insured households faced medical costs exceeding $1,500.
"Unfortunately, health care costs are rising, but that doesn't
mean Americans should have to decide between paying medical bills
or celebrating the holidays," said Tipton. "Households can help
prevent future holiday blues by educating themselves on
supplemental benefits, which help close the gap for costs that
health insurance doesn't cover. Plans like critical illness,
cancer or hospital indemnity are great because they
pay policyholders cash to cover anything from copays to monthly
bills such as mortgage or rent, enabling them to focus on the
things that matter most, like holiday cheer."
Households with children make more sacrifices to maintain
holiday cheer
Naturally, households with children are less
likely to reduce their holiday spending (33% compared to 44% of
other households) or cancel holiday events (23% versus 35%), but
they are especially feeling the weight of financial concerns. This
year, 43% of households with children plan to take some actions in
and around the upcoming holiday season out of concern over health
care expenses, including taking up more hours at work.
Holidays aside, households with children experience more
financial hardships year-round than other households:
- About half, 51%, of households with children say they acted out
of concern over medical expenses last year compared to only 34% of
households without children.
- Within the past 12 months, households with children are:
-
- More than twice as likely to have picked up hours/shifts (45%
vs. 17%).
- Nearly twice as likely to have tapped into their
401(k)/retirement savings (21% vs. 11%).
- Much more likely to have filed for/declared bankruptcy (7% vs.
1%).
"Throughout the pandemic, parents have been confronted with hard
decisions on how to best care for their children," continued
Tipton. "The survey shows high health care costs are forcing
parents to make even more sacrifices this holiday season – which
should be a joyous time of year – on top of everything they already
do for their families year-round."
To see additional survey findings and learn more about the
financial effects of health care issues – and how Aflac can help
with the expenses health insurance doesn't cover – visit
Aflac.com/HCI.
Methodology
The 2021 Aflac Health Care Issues Survey
is a national online survey of 1,003 U.S. adults fielded in
September 2021 by Hill+Knowlton
Strategies. Learn more about the survey findings
at Aflac.com/HCI.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE:
AFL) is a Fortune 500 company helping provide protection to more
than 50 million people through its subsidiaries in Japan and the U.S., where it is a leading
supplemental insurer, by paying cash fast when policyholders get
sick or injured. For more than six decades, insurance policies of
Aflac Incorporated's subsidiaries have given policyholders the
opportunity to focus on recovery, not financial stress. Aflac Life
Insurance Japan is the leading provider of medical and cancer
insurance in Japan, where it
insures 1 in 4 households. For 15 consecutive years, Aflac
Incorporated has been recognized by Ethisphere as one of the
World's Most Ethical Companies. In 2021, Fortune included Aflac
Incorporated on its list of World's Most Admired Companies for the
20th time, and Bloomberg added Aflac Incorporated to its
Gender-Equality Index, which tracks the financial performance of
public companies committed to supporting gender equality through
policy development, representation and transparency, for the second
consecutive year. To find out how to get help with expenses health
insurance doesn't cover, get to know us at Aflac.com or
Aflac.com/Espanol.
Media contact – Jon A. Sullivan,
706-763-4813 or Jsullivan@aflac.com
Analyst and investor contact – David A.
Young, 706.596.3264, 800.235.2667 or dyoung@aflac.com
Aflac | Aflac New York | WWHQ | 1932 Wynnton Road
| Columbus, GA 31999
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SOURCE Aflac