Benefits and Compensation

Working Mothers Unable to Save for Health Insurance Deductibles, Says Survey

Nearly half (49%) of working mothers surveyed do not have enough money to cover their health insurance deductible if they needed to do so today, according to a new survey from Aflac, a voluntary insurance provider, and Working Mother magazine.

Working mom

Working mothers are often the lead decision-makers in their families when it comes to health care, yet the increasing popularity of high-deductible health plans (HDHPs) combined with stagnant wages is making it difficult for many to maintain their lifestyle when faced with a medical event.

Approximately half of debt collections on consumer credit reports and bankruptcies in the United States are attributed to medical debt, making it essential to have funds available for unforeseen medical costs. However, the survey found that 62% of working mothers who responded have never set aside money to save for their health insurance deductible, with 56% noting the reason they haven’t set aside money is because they do not have extra cash on hand to save for anything.

The Aflac and Working Mother Survey was conducted in September 2016 by AYTM Research on behalf of Aflac and Working Mother magazine. Those surveyed included 1,000 U.S. adult women who work full time, have at least one child under age 18 living at home, and have major medical/health insurance.

Family Funds vs. Family Fun

Healthcare costs not only impact financial health, but can also take away from money set aside for family activities and savings. More than half (54%) of working mothers surveyed have had to divert funds away from something else in order to pay medical expenses. Of those:

  • 56% diverted funds away from family vacations;
  • 49% from family activities such as date nights, sporting events, concerts, or movies;
  • 23% from children’s holiday or birthday gifts; and
  • 21% from children’s college funds.

This could be a result of the rise in families with HDHPs. Forty-three percent of respondents said they were enrolled in a health plan with a deductible of $1,000 or more. The higher the deductible, the harder it can be to pay it.

“This new data shows clearly the financial stress that working families are under as health insurance deductibles rise,” says Jennifer Owens, editorial director at Working Mother Media, in a press release. “We all know we should be saving for our retirement and our kids’ college funds, but the need to cover a health insurance deductible is a real concern for us, too, especially since the need to tap in to our benefits can come as a surprise.”

Utilizing Available Resources is Key

Many employers understand the growing responsibility placed on their employees, especially mothers, and are offering resources to help mitigate financial risk when it comes to healthcare costs. The working mothers surveyed highlighted the following resources their employers provide to help them make better healthcare decisions:

  • Voluntary insurance (45%);
  • Employer funding of health savings account (HSA) to help meet insurance deductibles (35%); and
  • One-on-one meetings with a benefits consultant during open enrollment (33%).

Not surprising, voluntary insurance is at the top of the list. Voluntary insurance policies supplement major medical insurance to offer extended protection and peace of mind. The Aflac and Working Mother Survey showed that dental (78%), life (69%), and vision (64%) insurance are the most popular voluntary benefits among working mothers, but for those struggling to save for their deductible, it is important to also consider investing in additional voluntary products that assist in paying larger medical bills.

For example, critical illness, accident, and short-term disability insurance can help provide needed financial assistance if an unexpected injury or illness leaves a mother unable to work or with accumulating medical bills.

“As some of the hardest working people in the world, working mothers deserve to have stress-free time with their families without having to worry if they are protected from an unforeseen financial burden,” said Brenda Mullins, vice president of Human Resources and chief people officer at Aflac. “By investing in voluntary insurance coverage, they can leave their worry behind knowing they are prepared for out-of-pocket costs should an unexpected illness or injury occur.”

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