Unaffordable medical bills, higher deductible health plans, and confusing billing statements have caused an increase in physical and mental health issues for a majority of insured Americans, according to a new study from Health Payment Systems (HPS) and PayMedix.
More than half (52%) of insured Americans said that paying for medical bills was stressful. The vast majority of them (92%) claimed that the stress negatively affected their physical and mental health.
The 2023 PayMedix Healthcare Payments and Financial Disparities Study, released earlier this week, polled more than 1,000 Americans with employer-provided health insurance, along with 210 HR benefits managers. The study sought to gain insights into the affordability and impact of the current healthcare billing market in the US.
About one-third of respondents said that out-of-pocket costs (33%) and deductibles (31%) were not affordable.
And over half of Americans said that in the last six months paying for medical bills was stressful (52%), especially among younger generations and people of colour.
Tom Policelli, CEO of HPS/PayMedix, said: “Affordability challenges are taking a real toll, not only on the financial health of patients but their physical and mental health as well.
“It is particularly tough on people with lower credit scores and worsens the gap in health equity.
“The bad news is that the disjointed nature of our healthcare system has made it hard for consumers to even understand the financial side of their care. The good news is that there are holistic solutions that deliver efficiency to the system and affordability to consumers.”
After receiving an unexpected medical bill, many consumers said they may avoid future care altogether. Nearly one quarter (22%) said it made them never want to go to the doctor again.
Among a variety of health-related scenarios, nearly a third of respondents said the cost of an unexpected medical bill was the most stressful scenario (29%) that could happen.
In the past year, nearly one in five (19%) Americans received collection notices from their medical providers.
Of all those sent to collections, nearly two-thirds (62%) said they felt more negative about their provider after receiving a collection notice.
This unexpected debt caused nearly one-third (30%) of Americans to dip into their savings, and nearly one in five (17%) delayed payments.