Nearly half of consumers have less than $1,000 in their savings account, and one-quarter of consumers have nothing at all, according to data that was released this week as part of the inaugural Aflac Care Index, a report aimed at raising awareness of consumers’ exposure to debt resulting from medical bills not covered by health insurance.
Altogether, 46% of Americans do not have enough savings to pay for unexpected medical expenses, according to the report, which identified 11 states — Arkansas, Iowa, Indiana, Kansas, Kentucky, Ohio, Oklahoma, South Carolina, Texas, Virginia, and West Virginia — as having individuals that are the most vulnerable to not being able to cover their medical expenses in the event of a healthcare emergency. For example, 79% of Arkansas residents have balances in their savings accounts that are less than or equal to their out-of-pocket maximums, according to the report. Forty-four percent of Kentucky residents have no rainy-day fund to cover unexpected medical bills.
Further illustrating just how close to the line many people are living, 33% of individuals — who already have health insurance — say they can’t go more than one week without needing a paycheck to survive.
“Millions of Americans are forced to make difficult health-related decisions every day, often delaying treatment or incurring debt due to the high costs of health care,” said Shannon Watkins, Chief Brand and Marketing Officer for Aflac, in a statement. “The most important thing Americans can do to avoid the impact of medical debt is to be prepared. Make sure you assess your out-of-pocket maximum in relation to your savings, take steps to boost your rainy-day fund and prioritize preventative care to identify where you may be vulnerable based on your family history. Supplemental insurance, like Aflac, is also a potential solution, as it is designed to help close the gaps between what health insurance covers and does not.”
