Surprise Medical Expenses Are a Significant Source of Financial Stress for Middle Class Consumers
Over half have delayed seeking medical treatment because of high costs
Surprise medical expenses prove to be a hardship for all Americans no matter their credit score, according to a study released today by Elevate's Center for the New Middle Class (CNMC). The research found that eight in ten non-prime consumers (those with credit scores under 700), and six in ten prime consumers have experienced some level of financial hardship due to medical bills in the last five years.
These new findings revealed that 54% of non-prime and 42% of prime consumers have delayed seeking medical treatment due to fear of high costs. Additionally, lack of insurance was not a contributing factor to medical expense-related bills, as a majority of those surveyed have health insurance.
"After visiting the emergency room, recovery should be the focus; financial recovery should not," said Jonathan Walker, Executive Director of the CNMC. "Our research finds non-prime consumers are feeling these expenses more acutely, but we are seeing Americans across the board struggle with financial pain – on top of any physical pain – when recovering from an emergency medical expense. Moreover, they may forgo treatment altogether because of the financial burden."
Other key findings from the survey include:
- Nearly half of non-prime consumers and almost one-third of prime consumers said a financial disruption due to surprise medical expenses could not be absorbed in the month it occurred.
- When asked why medical expenses are disruptive, factors relating to insurance not covering claims, high deductibles, and high out-of-pocket costs are most commonly cited.
- More than half of Americans surveyed reported an emergency room visit for someone in their household in the past five years, noting inpatient hospital treatment as the most financially disruptive, followed by emergency room visits.
- 72% of non-prime and 65% of prime consumers felt that surprise medical expenses in some way disrupted their household's finances.
These findings follow a recent CNMC study, 'Understanding the Drivers of Non-Prime Credit,' that reported 80% of non-prime Americans list medical expenses as one of the top three reasons for a drop in credit score. "These examples demonstrate how surprise medical expenses can often be financially crippling to Americans nationwide," said Walker.
