Inflation has had serious effects across all aspects of the U.S. economy, and healthcare is no different.
While healthcare prices typically outpace the growth of other goods and services, prices began to climb rapidly in 2021 and have maintained a steady rise, even as overall inflation has begun to slow.
According to research published by KFF in August, healthcare prices grew by 3.3% in June 2024 from the previous year, compared to 3% for prices overall. Overall prices excluding healthcare grew by 2.9%.
Inflation has also produced higher wages at the same time that it has increased the cost of supplies, operations and insurance — increases that are often passed onto patients, who are increasingly pushed into making difficult choices about the care they can afford.
According to Medical Economics, 43% of Americans who have commercial insurance have avoided care due to increasing costs, leading some providers to enroll patients in programs that can accrue interest or fees, further adding to medical debt. Some practices, according to the report, have also adopted "aggressive" policies that make patients pay upfront for services, often creating delays as patients may not have the cash or credit to pay in full from services. This can have a cyclical effect of forcing patients to pay for more extensive and costly treatments down the line, with a potential for added personal expense.
Medical Economics also cited the recent Healthcare Payments and Financial Disparities Study, which found that 53% of Americans are now challenged to pay an unexpected medical bill over $1,000, or over $600 for younger patients or those with lower credit scores. Nearly one-third of Americans have had to use savings to pay their providers or use credit cards with high interest, further worsening the situation as interest rates rise.