Healthcare Costs Are Going Nowhere but Up — and Workers Are Feeling the Pain

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Healthcare Costs Are Going Nowhere but Up — and Workers Are Feeling the Pain

The Motley Fool

Most U.S. employees saw their healthcare costs rise last year — and they’re not happy about it.

To hear that numerous Americans are burdened by healthcare costs isn’t exactly news. But a new report by Bank of America Merrill Lynch highlights just how severe the situation has gotten. For one thing, 79% of employees saw their healthcare costs climb in 2016, up from 69% in 2015.

But it’s not just that healthcare expenses are rising; they’re also impacting workers who can’t keep up. A good 56% of people who saw their costs increase last year say their financial goals — namely, saving for retirement and paying off debt — are now suffering. And though not nearly as critical, two-thirds of workers whose healthcare costs went up have been forced to cut back on leisure.

IMAGE SOURCE: GETTY IMAGES.

All told, more than 50% of workers not only feel stressed about their finances, but cite rising healthcare costs as a major contributing factor. If you’re one of them, here are a few options that might help alleviate the burden.

1. Fund an FSA

A flexible spending account, or FSA, helps you lower your healthcare costs by allowing you to pay for them with pre-tax dollars. For the current tax year, you can put up to $2,600 in an FSA, and then use that money for qualified expenses like medications, in-office copays, and prescription eyewear.

The amount of money your FSA actually saves you will correlate to your effective tax rate, and the higher that number, the more you stand to save. For example, if you max…Read More

Lakeem Khodra
Lakeem Khodra
News Writer/Contributor at Tyranny News @lakeemk

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