In 2014, the average person with a single-coverage, employer-sponsored plan had a $1217 deductible.¹

According to a recent Commonwealth Fund study, more than 20% of insured adults ages 19-54 spend at least 5 percent of their income on out-of-pocket medical costs – not including premiums. Of that same group, 13% spend at least 10 percent of their income.²

So how are Americans keeping up with the rising burden of health care costs? Well, the bad news is that many of them aren’t. In fact, a major study by Harvard estimates 62.1% of all bankruptcies were due to medical costs.³

With the right guidance, however, you can help your employees prepare. Recommend these three steps:

• Step 1: Know Your Benefits – Many employees aren’t sure what their benefits cover or how much visits and procedures will cost. Because costs can vary widely, it’s a smart idea to shop around just like you would for a new appliance or vehicle. Make sure they know about cost estimator tools.
• Step 2: Get No-Cost Support – If your company offers no-cost health support, such as a Nurseline or Advocacy program, spread the word. Encourage employees to call when they have non-emergency symptoms to find out if seeing the doctor is the right approach or if there is a lower cost alternative such as an online doctor visit. These services can redirect people from the ER to more appropriate and affordable care.
• Step 3: Get an HSA – With a high-deductible health plan, it’s important to prepare for both expected and unexpected medical costs. Encourage your employees to open a health savings account (HSA) through OptumBank.com. They’ll benefit from a triple tax savings:
  • The money you put in is tax deductible or pre-tax if you use payroll deductions.
  • Your savings grow income tax free.
  • You don’t have to pay income taxes on withdrawals used for qualified medical expenses.

For more information, please download:

• The health savings and spending customer journey
• Joe’s health journey

¹ Kaiser Family Foundation. Visualizing Health Policy: Recent Trends in Employer-Sponsored Insurance. Available at: http://kff.org/infographic/visualizing-health-policy-recent-trends-in-employer-sponsored-insurance/. Accessed December 16, 2014.
² Collins, Sara R., et al. Too High a Price: Out-of-Pocket Health Care Costs in the United States: Findings from the Commonwealth Fund Health Care Affordability Tracking Survey, September–October 2014. Available at: http://www.commonwealthfund.org/~/media/files/publications/issue-brief/2014/nov/1784_collins_too_high_a_price_out_of_pocket_tb_v2.pdf. Accessed December 16, 2014.
³ Himmelstein, David U., et al. Medical Bankruptcy in the United States, 2007: Results of a National Study. The American Journal of Medicine. Available at: http://www.pnhp.org/new_bankruptcy_study/Bankruptcy-2009.pdf. Accessed June 27, 2014.