Preventing Medical Debt: Recommendations for Employers
This report shines a light on employer decisions around health insurance and how those decisions have helped shape the medical debt crisis, explaining specific actions employers should take now to reduce employee financial stress while improving productivity and retention.
56% of U.S. employees with employer-sponsored health insurance report that liking their health coverage is a key factor in whether to stay at their current job.
26% of adults with employer-sponsored plans are now considered underinsured.
Almost half of underinsured consumers with medical debt report issues paying medical bills or medical debt.
With input from members of our Stakeholder Advisory Council, the Financial Health Network developed recommended actions and strategies for employers to help prevent medical debt among their workforce. Although each recommendation is effective as a stand-alone, employers can achieve the greatest impact by implementing them all.
Assess health insurance affordability for all employees.
Educate employees about the basics of insurance, and explain out-of-pocket expectations upfront.
Provide services or benefits that help employees manage health insurance out-of-pocket expenses.
Offer insurance plans based on employees’ financial circumstances and healthcare needs.
Explore the Full Series
Explore insights into the prevalence of medical debt and its effect on consumers, how medical debt functions as a social determinant of health and driver of health inequities, and opportunities for key players to prevent it.
Read about actionable strategies healthcare providers should take now to improve financial assistance and repayment programs, support informed patient decision-making, and proactively identify patients at risk for medical debt to target financial assistance.
Discover opportunities insurance providers should seize now to help members navigate plan selection, understand key terminology, reduce out-of-pocket expenses, utilize preventive care, and improve administrative processes that affect customers.
While the goal of the American health care system is to improve health and well-being, it triggers financial hardship for many people. One in five U.S. households have incurred medical debt, making it the most common form of unpaid bill for which consumers are contacted by debt collectors, and a reason why many people forgo getting the health care they need.
This report shows how the shifting health insurance landscape has helped shape the medical debt crisis, identifying specific actions insurers should take now to boost Americans’ confidence in their coverage and motivate them to pursue timely care that reduces the need for costlier services.
Sign Up to Receive Our Newsletter
If you’re a healthcare professional dedicated to improving physical and financial health, sign up to receive our newsletter today.