Health Care Costs Overtake Inflation as Top Financial Concern, Survey Shows

A medical worker enters the emergency room at a hospital in Brooklyn, New York City, on April 15, 2020. (Angela Weiss/AFP via Getty Images)

For the first time since 2021, health expenses have topped inflation as the main concern among middle-income American households, according to a recent national survey from financial service provider Primerica.

As a whole, 20 percent of survey respondents are “slightly more optimistic” about their finances, compared to just 15 percent of respondents in the previous quarter, according to the Middle-Income Financial Security Monitor (pdf) published on April 12. Meanwhile, the majority, at 53 percent, remain pessimistic about the economy, saying it will be worse a year from now.

“As the nation heads further into 2023, middle-income Americans are showing increasing confidence in their personal finances while remaining realistic about the current economic climate,” Primerica CEO Glenn J. Williams said in a press release.

The survey collects data on a quarterly basis from American households with annual incomes between $30,000 and $100,000. The national poll, conducted by Change Research, surveyed 1,471 respondents about their households’ financial health between March 6 and 10.

Health Care Affordability

While economic optimism may be on the rise, the cost of health care remains a significant stressor for many households.

According to polling data from the Kaiser Family Foundation, a nonprofit focused on health policy research, 41 percent of adults report having debt due to medical or dental bills, while 47 percent say it is very or somewhat difficult for them to afford health care costs. For those with health insurance, 44 percent worry about affording their deductible, and 36 percent worry about being able to afford their monthly premium.

However, an analysis by Health System Tracker finds that overall prices grew by 6 percent in February 2023 from the previous year, while prices for medical care increased by 2.3 percent. Medical care prices and overall health spending typically outpace growth in the rest of the economy.

Consumer Spending

Primerica found that inflation is still high on the list of worries for many Americans. According to the survey, 40 percent of households reported spending less than a year ago, while 72 percent say their income is falling behind the cost of living.

“While concerns about inflation are ebbing, higher costs continue to place strains on budgets causing families to prioritize more than ever. Our survey results highlight that financial security is key to navigating the ever-changing economy and that guidance and expertise can help guide households to better financial security,” Williams said.

In addition, 36 percent of respondents report using their credit cards more often in the past year for everyday purchases, including gas and groceries, up 9 percent from March 2022.

Still, fewer households say their credit card debt has increased in the past three months.

“The Financial Security Monitor found that the middle market’s reliance on credit cards may be slowing, and families are taking positive steps to pay down consumer debt,” Williams said.

According to the survey, the number of respondents who say they have no credit card debt has increased to 24 percent, up two percentage points from the fourth quarter in 2022.