Premiums, deductibles, and the cost of healthcare are all increasing year-over-year, and young Americans are feeling the strain. How are they faring/ And what are they looking to for help?
We turned to opinion research firm Ipsos to get a read on millennials’ current financial outlook as well as their response to rising healthcare costs. These findings can be insightful for employers interested in helping their employees manage the increasing burden of healthcare costs.
Millennials’ outlook on healthcare costs
We conducted a survey with Ipsos that found that healthcare costs in particular weigh heavy on Americans’ minds and wallets. As for younger Americans (in this survey, aged 18-34):
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They are more concerned than other age groups about paying for basic care. 29% of millennials said they were concerned, compared to 18% of adults age 35-54 and 9% of adults age 55+.
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One in four avoid medical bills by skipping the doctor. 27% report that they avoid medical bills by forgoing healthcare and/or visits to the doctor.
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Not all are planning for routine healthcare costs. 50% said they have received a medical bill they didn’t budget for.
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They’d like to lower their healthcare costs, but don’t know how.Nearly three out of four (73%) reported wanting to lower their healthcare costs, but not knowing how. Fewer expressed this sentiment in older age groups—only 67% of adults age 35-53 and 53% of adults age 55+.
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They want more information on healthcare costs. This is the age group that feels most strongly that their insurance provider doesn’t offer enough information about healthcare costs. 57% of millennials expressed this sentiment, compared to only 52% of adults age 35-53 and 40% of adults age 55+.
What millennials are looking for
We found that millennials are seeking out technology, benefits tools, and external resources that could help navigate rising healthcare costs.
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They want to comparison shop. 69% said they’d rather comparison shop on their own than take recommendations from family and friends, marking a departure from earlier generations’ reliance on word of mouth over data.
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Many want to take control of their own spending. 42% said they have at some point created a budget and/or use budget tracking apps.
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They're not currently asking for help. Only 10% said they ask their employer for help understanding benefits. Similarly, only 10% said they would try to negotiate an expensive medical bill.
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Those who have insurance through their employer are more committed to taking control of their own healthcare expenses. Only 12% of all millennials said they would contribute to a HSA or FSA—but this jumps to 20% for those who report receiving insurance through their employer.
More insights from our survey
In addition to healthcare costs, our survey uncovered key themes around what millennials consider to be the financial milestones of adulthood, how confident they feel in achieving those benchmarks, and their progress so far. Check out our full infographic below.
