Men vs. Women: New Study Reveals $15 Billion Per Year Difference in Healthcare Costs — Here’s Why
It’s a common fact that individual healthcare costs can vary widely — but a new study reveals just how deep that gap is between men and women.
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According to new research by Deloitte, titled “Hiding in plain sight: The health care gender toll,” employed women face approximately $15 billion higher annual out-of-pocket healthcare costs than employed men, further widening the impact of wage disparity.
The financial burden from out-of-pocket medical expenses is disproportionate. The researchers’ findings show that women pay more out-of-pocket than men for every age group from 19 to 64, excluding pregnancy-related services. They also tend to get less coverage for every premium dollar spent.
“When we initiated this analysis, we assumed that pregnancy and delivery were going to be critical drivers of any additional burden on women,” said Andy Davis, principal in the healthcare practice at Deloitte Consulting, LLP and one of the leading authors of the report. “What we didn’t anticipate was uncovering a billion-dollar burden on women beyond maternity care that potentially places them in a position to choose between care that they need and care they can afford.”
The study also finds that, on average, under single coverage, female employees have approximately $266 more out-of-pocket spending per year than male employees (just over 18% more than men’s out-of-pocket costs).
Experts agree that these disproportionate healthcare costs women face can have significant and far-reaching implications for their physical and financial well-being.
Like a domino effect, the added burden of substantial healthcare expenses can create financial stress and strain on women and their families.
Medical bills, prescription costs, and insurance premiums can all eat into their household budgets — leading to financial instability and debt storage. This financial stress can, in turn, contribute to poor mental health and an overall decrease in their quality of life.
For this reason, the Deloitte study’s co-authors conclude that closing the benefit gap is the biggest driver of health equity. But to do so “requires an intentional review of benefit design coverage with focused analysis of the impact on men, women, and individuals of any gender. This could make better health and well-being more accessible to all.”
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