Health Care Costs Now Top Inflation As Americans' Top Concern, Survey Shows

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Inflation is no longer the main concern of Americans. The cost of health care makes Americans sweat these days.

Health care costs are the top concern for middle-income American households for the first time since 2021, outpacing inflation, according to a national survey by financial firm Primerica. While more than half of those surveyed said they were pessimistic about the broader economy, 20% were "fairly optimistic" about their personal finances, up from 15% last quarter.

“As the country approaches 2023, middle-income Americans are becoming more confident in their personal finances and remaining realistic about the current economic landscape,” Primerica CEO Glenn Williams said in a news release.

Primerica's Middle Income Financial Security Monitor collects quarterly data from US households with annual income between $30,000 and $100,000. The national survey, conducted by research firm Change Research, asked 1,471 respondents between March 6 and 10 about the financial health of their families.

constant stress

Health care costs have not always been a top concern for American families, but they have long been a source of stress for many families struggling to manage their finances.

According to a survey by the Kaiser Family Foundation, a nonprofit organization dedicated to health policy research, nearly 40 percent of adults report being in debt due to medical or dental bills. Also, nearly half of Americans say they have trouble paying for health care.

"You don't look ready no matter how ready you are," Chicago's Ellie Ward said. She and her husband Marcus previously spoke with CBS News consumer investigative correspondent Anna Werner with KFF Health News about the medical debt that still haunts them.

The high cost of Medicare disproportionately affects people of color, as well as women, low-income people, and uninsured adults. However, even those with health insurance "are not unburdened by health care costs," according to the KFF analysis.

The survey found that nearly a third of insured adults worry about paying their monthly health insurance premiums and 44 percent worry about deductibles.

Nearly four in 10 American adults surveyed said they delayed enrolling in Medicare last year or opted out because they couldn't afford it. Among all types of health care, adults reported delaying dental services due to cost, according to the survey.

Inflation remains at the highest

Primerica found that while inflation is not the main problem, it is still one of the main problems for many Americans.

Nearly a fifth of those surveyed expressed fears that the United States could enter a recession. Meanwhile, according to the survey, 40% of households surveyed said they were spending less than a year ago, up from 32% the previous quarter.

Additionally, more than a third of those surveyed said they used their credit cards frequently in the past year, and nearly half said they used their credit cards for everyday purchases, including gas and groceries.

Consumer credit card debt hit a record $4.82 trillion in February as rising interest rates and persistent inflation continue to weigh on household balance sheets, according to a new report from the Federal Reserve.

silver lines

Survey data shows that as more respondents report using credit cards to pay for necessities, the number of households in debt is declining.

According to the survey, 33% of households have seen an increase in credit card debt in the last three months, compared to 4% in the previous quarter. Additionally, the number of households without credit card debt has risen since December to nearly a quarter of those surveyed.

"The Financial Conduct Authority found that the mid-market's reliance on credit cards may be waning and that households are taking positive steps to pay off consumer debt," Williams said.

Why are medical expenses out of control in the United States?