Financial Strain from Health Care Costs a Growing Concern for Americans
October 05 2006 - 11:00AM
PR Newswire (US)
Aflac-Commissioned Survey Reveals Financial Worries - Even
Bankruptcy - Caused by Health Care Costs COLUMBUS, Ga., Oct. 5
/PRNewswire/ -- One in three Americans (32 percent) say they are
concerned that they will someday need to declare bankruptcy due to
unexpected medical bills, according to a recent survey commissioned
by Aflac, the number one provider of guaranteed-renewable insurance
in the United States. Additionally, the survey found that nearly
all Americans (89 percent) say the rising cost of health care is
among the most pressing concerns facing Americans today. The
nationwide survey randomly polled 2,091 Americans age 18 and older
in September 2006. Aflac's survey revealed that increasing health
care costs in the United States have a significant impact on
Americans' everyday lives, forcing many people to delay medical
care or tap into their savings to pay expenses. "There is a direct
correlation between the continuous increase of health care costs
and financial anxiety," said Paul Amos, executive vice president
and COO, Aflac. "It is important for Americans to educate
themselves on the various health care and insurance options
available and to create a financial safety net to help with the
protection of their physical and financial well- being, and that of
their families for the long term." Increasing costs in health care
are forcing many Americans to go without care. The number of
Americans with major medical insurance has decreased compared to
one year ago, dropping from 81 percent in 2005 to 74 percent in
2006. And the perils of being uninsured are apparent.
Three-quarters (74 percent) of survey respondents without any type
of medical insurance report that they have considered not going to
the doctor because of the costs they may incur, while only 37
percent of those with medical insurance reported doing so. The
threat of financial strain and even bankruptcy due to medical costs
is a legitimate concern for many Americans. A 2001 Harvard study
found that illness and medical bills caused half of the 1,458,000
personal bankruptcies in 2001 and estimates that medical
bankruptcies affect about 2 million Americans each year.
Alarmingly, the American Bankruptcy Institute states that
three-fourths of the people who file for bankruptcy because of
medical debts have health insurance when the medical problem
begins. - 82 percent of respondents believe that many Americans
will need to dip into their savings to cover health care costs. -
Eight in ten (80 percent) believe that growing medical and health
care expenses will make retirement living less comfortable in the
future. - 37 percent of respondents in the Baby Boomer generation
are concerned that they will someday need to declare bankruptcy due
to unexpected medical bills, compared to 29 percent of Gen Y, 33
percent of Gen X, and 25 percent of Post-War generation
respondents. Although Americans seem to know the steps they should
take to prepare for an unexpected medical emergency, few actually
follow the advice, causing a gap between belief and actual
behavior. - 83 percent of respondents agree that all Americans
should put aside money specifically to cover future health care
expenses. - Fewer than four in ten (37 percent) respondents have
actually put aside money specifically to cover future health care
expenses. - Nearly half (46 percent) report that they only could
cover up to three months of living expenses if they were not
receiving a paycheck. The majority (85 percent) of respondents
acknowledged that in addition to caring for their spouses and
children, more Americans will have to deal with the financial
strain of caring for elderly parents. As the sandwich generation
(those sandwiched between caring for aging parents, adult children,
and/or grandchildren) grows, apprehension about this strain is
understandable. "Individuals caring for both aging and young
generations face many daunting scenarios, such as caring for a
spouse or partner, an aging parent, a sick child, or in the most
difficult situations, more than one at once," said Amos. "Proper
medical coverage, financial savings and Aflac insurance can help
provide a financial cushion." According to the Aflac survey, one in
three (33 percent) of Americans have used vacation time to care for
a family member and more than a quarter (28 percent) have lost
wages because they stayed home to care for a sick child or elderly
parent. - Two-thirds (67 percent) of those with children under 18
at home have missed work to take care of them. - One-quarter (26
percent) of Americans have missed work to care for an elderly
parent. About Aflac For more than 50 years, Aflac products have
given policyholders the opportunity to direct cash where it is
needed most when a life-interrupting medical event causes financial
challenges. Aflac is the number one provider of
guaranteed-renewable insurance in the United States and the number
one insurance company in terms of individual insurance policies in
force in Japan. Aflac's insurance products provide protection to
more than 40 million people worldwide. Aflac has been included in
Fortune magazine's listing of America's Most Admired Companies for
six consecutive years and Forbes magazine's Platinum 400 List of
America's Best Big Companies for five consecutive years. In January
2006, Aflac was included in Fortune magazine's list of the 100 Best
Companies to Work For in America for the eighth consecutive year.
Aflac was also included in Fortune magazine's list of the Top 50
Employers for Minorities in August 2005, and in September 2005,
Aflac Japan was named the Life Insurance Company of the Year at the
Asia Insurance Industry Awards, sponsored by the Asia Insurance
Review. Aflac Incorporated is a Fortune 500 company listed on the
New York Stock Exchange under the symbol AFL. To find out more
about Aflac, visit aflac.com. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO) Media
contacts: Laura Kane Aflac Incorporated (706)-596-3493 Mechell
Clark Aflac Incorporated (706)-243-8004
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO
http://photoarchive.ap.org/ DATASOURCE: Aflac Incorporated Contact:
Laura Kane, +1-706-596-3493, or , or Mechell Clark,
+1-706-243-8004, or , both of Aflac Incorporated Web site:
http://www.aflac.com/
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