Here are five key trends:
1. Overall out-of-pocket spending for healthcare reached $486 billion last year, up 8 percent since 2011.
2. In 1980, the average individual out-of-pocket healthcare payments were $250; last year they reached $1,400.
3. Healthcare consumers are paying for their bills with cash, checks, credit cards, healthcare financing programs, flexible spending accounts and health savings accounts. However, HSAs account for a very small portion of the overall spending and healthcare financing programs are a new entrant in the market.
4. Cash is expected to continue expanding as the payment method of choice, growing at 6.1 percent annually through 2021. Healthcare financing for elective procedures and HSAs are expected to have strong growth over the next few years as well.
5. Cash or check payments were the most common payment form for both elective and non-elective procedures last year, representing around $294 billion in out-of-pocket spending.
“This was due mainly to the use of employee wages to pay healthcare plan premiums, as premiums comprised the lion’s share of healthcare expenditures,” said Kalorama Publisher Bruce Carlson.
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