Research illuminates specific consumer knowledge gaps regarding personal finances, health insurance and health benefit accounts
Alegeus research evaluates consumer health and financial fluency. Based on a survey of more than 1,400 U.S. healthcare consumers, the report was commissioned to better understand consumer confidence and fluency in managing their personal finances and health benefits and to assess the degree in which fluency levels impede consumer progress to proactively manage their healthcare finances.
Tax-advantaged benefit accounts (including FSAs, HSAs, and HRAs) offer great value to consumers, allowing them to save pre-tax for eligible healthcare expenses. However, despite being widely offered by employers, those accounts are often under-utilized and under-funded. According to Aite Group, consumer out-of-pocket healthcare spending in 2018 is predicted to be $371 billion. Yet, that same report indicates that only $86.3 billion of that spending will flow through tax-advantaged benefit accounts. This means, assuming an average tax rate of 30 percent (Federal & State), consumers will leave nearly $85 billion in tax savings unclaimed this year.
Through better understanding of consumers’ knowledge about health and financial concepts, this research offers unique insights into consumers’ health and financial wellness habits and behaviors.