It looks like firms need to focus on convincing workers of the importance of being prepared to satisfy the cost of their deductibles.
Reasons: Most workers wouldn’t be able to pay for the types of medical care they’d need if a catastrophic event take place – i.e., the type of event that triggers high deductibles to kick in.
That’s what a recent study by AFLAC uncovered. According to
- 53% of employees would have to borrow from their 401(k)s and/or use a credit card to cover the costs associated with an unexpected serious illness or accident
- 49% of workers have less than $1,000 (well below the average high-deductible amount) to pay for out-of-pocket expenses associated with a serious illness or accident
- 27% of employees have less than $500 to pay for such expenses, and
- 42% said they aren’t prepared at all or are not very prepared to pay out-of-pocket expenses associated with a serious illness or injury.