1.
The Rising Costs of Medical Bills 2017 Sponsored by

2.
Systemic Issues Surrounding Healthcare
Insurance and medical bill prices have been rapidly increasing.
has analyzed the latest data and worked with industry
experts to find the root causes behind these issues, as well as the effects
they have on society.
Through this report, Vest highlights the trends regarding deductibles,
premiums, and complexity, and the financial and health effects they are
causing for America.

3.
Workers’ deductibles have been increasing at a rapid pace
Source: Kaiser Family Foundation/Health Research & Educational Trust (HRET), 2016 Employer Health Benefits Survey
2006 2016
$1,478
$301
5x
$991
2011
Average workers’
deductibles rose 12%
last year alone, and
analysts believe that
growth may continue

4.
The need for voluntary benefits to offset increasing
deductibles is on the rise
To address the
deductible gap, 7 in
10 employers
surveyed said they
offer voluntary
benefits to improve
morale for existing
employees and to
attract new talent
With the cost of health
insurance and out-of-
pocket costs rising, almost
4 in 5 employees see a
growing need for voluntary
insurance today compared
to last year.
Source: Kaiser LIMRA voluntary benefits sales research; Aflac WorkForces Report conducted by Lightspeed GMI on behalf of Aflac

5.
Many companies try to answer the high deductible
challenge with HSA/FSA* solutions
62%
86%
62% of companies with 50 to
500 employees offer an FSA
86% of companies with 500+
employees offer an FSA
Source: NerdWallet Health Analysis
*A health savings
account (HSA) is a tax-
advantaged medical savings
account available to
taxpayers in the United
States who are enrolled in a
high-deductible health plan
(HDHP). The funds
contributed to an account are
not subject to federal income
tax at the time of deposit.
*A Flexible Spending
Account (FSA) is a type
of savings account available
in the United States that
provides the account holder
with specific tax advantages.
Set up by an employer for an
employee, the account allows
employees to contribute a
portion of their
regular earnings to pay for
qualified expenses, such
as medical expenses or
dependent care expenses.

6.
$1,372 $620 $1,359
$2,826 $1,220 $2,704
Average HSA Contribution vs. 2016 limit
Employee Contribution Employer Contribution Gap to 2016 Limit
Source: Benefitfocus State of the Employee: Midsize employer Edition 2016
People who contribute to HSA’s are mindfully saving…

7.
…But participation rates in HSA/FSA plans overall
haven’t been able to keep up
Large employers report
only a 20% FSA employee
participation rate
38% of Americans with a
High Deductible Health Plan
are eligible for an HSA, but
do not have one
20%
38%
0% 50% 100%
Source: Benefitfocus State of the Employee: Midsize employer Edition 2016; 2011 Employee Benefit Research Institute (EBRI)/Mathew Greenwald & Associates (MGA) Consumer Engagement in Health Care Survey

8.
Source: Kalorama Information, Out-of-Pocket Healthcare Expenditures in the United States
Consumers'
out-of-pocket
spending on
medical
services rose
to $486 billion
last year

9.
In addition to increasing deductibles, healthcare
premiums are rising faster than employees’ wages
88%
138%
203%
20%
42%
56%
17%
31%
42%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Health Insurance Premiums Workers' Earnings Overall Inflation
Cumulative Increases in Health Insurance Premiums, Annual Deductibles, and
Inflation 1999 – 2015 (Indexed)
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2012. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to
April), 1999-2012; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2012

10.
Managing costs and getting the right care is becoming
more and more complex
In a case study study, when participants were asked four simple multiple-choice questions
testing their definitional understanding of the following standard plan features:
Copayments Coinsurance
Maximum out-of-
pocket spending
Deductibles
Only 14% provided correct responses
Source: Journal of Health Economics 32 (2013) 850–862

11.
On top of all of this, no one
knows what the future of
the U.S. healthcare system
will look like…
…As current legislators try to
repeal and reform the current
system, the future of
healthcare is uncertain

12.
Source: Kalorama Information, Out-of-Pocket Healthcare Expenditures in the United States
63% of Americans
don’t even have $500
in their savings account
The average out-of-
pocket spending for an
individual consumer
last year was $1,400
How are they
supposed to afford
their medical bills?
With the current state of financial wellness in America, it is
becoming increasingly difficult to afford medical bills

13.
Medical bills are causing people to
take drastic measures
Source: NerdWallet Health Analysis
Despite having year-
round insurance
coverage, 10 million
insured Americans will
still face unplanned bills
they are unable to pay
Over 15 million adults
will use up all their
savings to pay medical
bills
Over 11 million adults
will take on credit card
debt to pay off their
hospital bills
Over 10 million adults
will be unable to pay
for basic necessities
like rent, food, and
heat due to their
medical bills

14.
Unplanned medical bills are the #1 cause of bankruptcy
Source: NerdWallet Health Analysis
6 in 10
bankruptcies this
year will be due
to medical bills
Job loss,
credit card debt,
and other
Medical Bills

15.
That means households with 1.7 million Americans will file for
bankruptcy this year because of the inability to pay their medical bills
Source: NerdWallet Health Analysis

16.
To save costs, over 25
million adults will not
take their prescription
drugs as indicated,
including skipping doses,
taking less medicine
than prescribed, or
delaying a refill
Source: Ann Intern Med. 2012 Dec 4;157(11):785-95.
This lack of adherence to
medical advice is
estimated to cause
approximately 125,000
deaths and 10% of
hospitalizations per year
To make ends meet, people are sacrificing their health

17.
What does this mean for employers?
Rising cost of
medical bills
Increase in
employees’
financial stress
Decrease in
health and
well being
Less productive
employees
Real impact to the bottom line

18.
www.wearevest.com
Vest is here to help…
Guide employees to plan for emergencies…
Get the most out of their benefits…
Start a wholistic conversation about their
finances…
And save your company money.
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