Helping patients choose the care they want
Survey shows consumers may postpone medical care if they cannot afford it, but payment options and financing plans might help[i].
Photo: RichLegg/ Getty Images
Healthcare costs in the United States are among the highest in the world and since the 1960's, those costs have nearly quadrupled.[ii] As those costs have risen, the responsibility of them has transitioned away from health payers to the patients. This is a result of many factors, including increasing out-of-pocket healthcare costs, the rising popularity of high-deductible healthcare plans, and traditional health plans covering less.
To better understand today's healthcare costs and what people could expect to pay over their lifetime, as well as potential cost-related pain points, CareCredit, a Synchrony solution, conducted the Lifetime of Healthcare Costs research, which surveyed 3,200 American adults from the ages of 18-79.i The results paint an important picture of how consumers understand, plan for and are challenged by their out-of-pocket medical expenses. Data from this survey supports the importance of third-party and alternative payment methods to help make care more accessible.
Costs and the Impact on Your Patients
About half of U.S. consumers report wellness as a top priority in their day-to-day lives,[iii] but more than a quarter of Americans have delayed recommended medical procedures because of cost.i We know delaying medical testing or treatment – whether it's due to cost, or any other reason – can worsen health outcomes,[iv] so what are folks doing to avoid those outcomes?
Survey results found that an insured American with an employee-sponsored health insurance plan could spend more than $320k (including insurance premiums and out-of-pocket expenses) in out-of-pocket costs during their lifetime.i For people living with chronic conditions or who purchased their own insurance without employer or government subsidies, that number could more than double – topping $700k.i
Now with numbers like those, the truly eye-opening part is how people are planning for these expenses--in short, the majority are not. Lifetime costs of healthcare can be in the same range as a mortgage or college tuition, but fewer than half of all Americans are actively saving for future healthcare expenses and 80% of them don't have a dedicated savings account for their healthcare.i Delaying care due to costs isn't limited to one subset of people either, but there are fairly significant differences between the generations. 50% of Gen Zers, Millennials, and Gen Xers, on average, said they would consider postponing non-urgent medical care for expenses less than $1,000 versus just 32% of Boomers.i
Delaying care can negatively affect patients and can be bad news for your practice. When patients can't afford to come in, you may see less business, poorer retention and increased time to payment-- all things that can impact your staff and ability to operate.
Financing Options Can Help Manage Unexpected Costs
Costs that are unexpected can contribute to the anxiety consumers experience when seeking healthcare treatment. A report in Medical Economics stated that 22% of people who received an unexpected medical bill reported that they never wanted to go to the doctor again.[v] To ensure consumers continue to seek the care they want or need, provision of alternative financing is important.
Many people think health insurance will cover most medical-related costs. As a result, most individuals don't think they need to plan or save for the care they want or need. As providers, it's important to let your patients know what options are available to them such as state or federal programs, flexible spending accounts (FSA), healthcare savings accounts (HSAs), in-house payment plans or third-party financing.
An example of a third-party solution is Synchrony's CareCredit health and wellness credit card, which offers multiple financing options for qualifying consumers, including deferred interest if paid in full within 12 months. Another financing option, Synchrony's Pay in 4 installment loan product enables consumers to make four equal payments over six weeks with no interest. Financing options like these can help make procedures more accessible by offering consumers a way to manage cost. CareCredit simplifies the payment process, remitting the full payment to the provider within two business days, and handling the payment collection with the patient from there, which reduces the financial and administrative burden on the provider.
When it comes to healthcare, offering payment options can help patients manage cost. Consumers may not want to seek care if they feel they cannot afford it, so financing options can help increase access to treatments or procedures. Providers are an important part of directing consumers to payment options, but thanks to the availability of third-party financing partners like CareCredit, those providers need not bear the risks and burdens of providing that financing directly. Utilizing healthcare financing programs helps consumers feel secure in their ability to pay for the services they want or need, and providers can benefit from that same assurance.
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual advisors and/or medical providers with respect to any information presented. Synchrony and any of its affiliates, including CareCredit, (collectively, "Synchrony") makes no representations or warranties regarding this content and accepts no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.
[i] 2022 CareCredit Lifetime of Healthcare Costs Research. CareCredit is a Synchrony solution. Lifetime costs were extrapolated during an adult lifetime between the ages of 18 and 79.
[ii] Peter G. Peterson Foundation. Why Are Americans Paying More For Healthcare? Published July 14, 2023.
https://www.pgpf.org/blog/2023/07/why-are-americans-paying-more-for-healthcare
[iii] McKinsey & Company. Still feeling good: The US wellness market continues to boom. Published September 19, 2022.
[iv] Gertz AH, Pollack CC, Schultheiss MD, Brownstein JS. Delayed medical care and underlying health in the United States during the COVID-19 pandemic: A cross-sectional study. Prev Med Rep. 2022;28:101882. doi:10.1016/j.pmedr.2022.101882
[v] Shryock T. Health care costs increasing physical and mental problems for patients. MedicalEconomics. Published June 7, 2023.
