Millions of American workers simply can’t afford to regularly see a doctor, or pick up their prescriptions for newer and more expensive drugs.

A recent study found that 43% percent of working-age adults were inadequately insured in 2022.

Of these, about 9% were completely uninsured, 11% had a gap in insurance coverage over the past year. And some 23% actually had health insurance in place – but still couldn’t afford to get the health care they needed.

The reason: high deductibles, co-pays, and other out-of-pocket costs for health care are overwhelming their available savings. A health insurance plan with an $8,000 deductible doesn’t help most people who don’t have $8,000 lying around.

According to a recent survey by the Commonwealth Fund, nearly half of employees surveyed – 46% – reported they had delayed or skipped getting medical treatment due to costs. 42% said they were currently paying off medical debt or had trouble affording health care costs.

Costs to Employers

The healthcare affordability crisis isn’t just an employee problem: The healthcare affordability crisis has a very real effect on employers, as well… particularly small businesses who have less capacity to self-insure, or to absorb the loss of a key employee to a preventable healthcare issue. 

If you suspect your employees are avoiding or putting off receiving health care services because of cost, think of it like deferred maintenance: it may save a bit of cash flow for a little while. But eventually, it comes back to bite employers – and sometimes quite severely.