The Burden of Medical Debt: How It’s Affecting Employees and What Employers Can Do 

Medical debt is a growing issue, with 41% of Americans currently carrying medical debt, most owing more than $1,000. As healthcare costs continue to rise, this debt quietly takes a toll on employees, leading to increased stress, decreased productivity, and even avoidance of necessary medical care. The sources of medical debt are varied, from unexpected emergencies and high deductibles to chronic illnesses and underinsurance, but the impact is consistent: employees are distracted, disengaged, and struggling to stay focused at work. 

Nearly 80% of employees with high financial stress say medical debt distracts them from their responsibilities, with many spending at least an hour each week during work dealing with debt-related issues. For employers, this translates to lower morale, reduced engagement, and higher absenteeism, factors that can undermine company culture and increase turnover. By offering comprehensive financial wellness resources, employers can help ease this burden. Whether it’s through offering clear education on health insurance options, promoting emergency savings, or access to affordable credit, employers can play a key role in reducing the financial stress caused by medical debt. 

Check out our infographic to learn more about the effects of medical debt and how FinFit’s solutions can help your employees manage the costs of medical care and improve overall wellbeing.