Unfortunately, many of us can relate to this common dilemma: should you pay a bill that’s due this month or finally take care of that medical issue?

Putting off non-urgent care can feel like the right choice in the moment but leads to long-term consequences—and ultimately, higher bills.

“Nothing quite beats you down mentally, like financial stress,” said Peter Dunn, CEO of Your Money Line, a financial wellness provider that provides software and coaching to clients and employees across the country. “It becomes [a circular pattern]: ‘I can’t get care because I’m not financially well,’ and then, ‘I become un-financially well because I don’t get the care.’”

Self-insured employers face similar tough calls. Increasing employee cost share means more will put off care, but keeping ahead of trend can feel impossible without passing some increases onto employees.

That’s the puzzle Dunn and Jason Tibbels, Chief Medical Officer at Lantern, discussed in a recent webinar. They covered:

• Why employees put off healthcare they need
• How delaying care impacts long-term health, productivity and absenteeism
• Tools employers can use to help employees manage their money and pay for care
• How benefits leaders can better understand their healthcare spending to find opportunities for savings that they can ultimately pass on to employees

The Financial Toll of Delaying Care

The statistics paint a concerning picture: 58% of Americans have postponed medical care due to cost concerns, while 88% report struggling to meet basic living expenses. And possibly even more alarming, 50% have insurance but can’t afford their deductibles.

The stress of financial hardship can take a significant toll on employees’ mental and physical health. This stress can lead to delayed care, which often results in worsened conditions, more complex treatments and higher healthcare costs. The real-world impact is significant. For instance, delaying colon cancer treatment by just one month can reduce survival rates by 10 percent.

Dr. Tibbels shared another example: Maria, a 56-year-old retail worker with severe osteoarthritis. Due to a high deductible, she postponed her knee replacement surgery. Over time, her condition deteriorated, leading to decreased mobility, weight gain and frequent absences from work. By the time she was finally able to afford the surgery, it was more complicated and required more extensive rehabilitation, ultimately impacting her quality of life and financial stability.

What Employers Can Do to Help Employees Prioritize Their Health

Employers can take several steps to help employees prioritize their health and avoid the negative consequences of delayed care. Here are 3 key strategies to break the cycle:

1. Incentivize and Promote Preventive Care to Help Employees Take Action

Preventive care represents one of the highest-value investments in healthcare, yet remains underutilized when financial barriers stand in the way. Employers can take action to remind employees to be proactive with their health, which improves outcomes and reduces long-term healthcare costs.

“Finding ways to get your employees to take action on the things that we know prevent progression of terrible [health conditions] is a good idea,” Dr. Tibbels said. For example, some Lantern clients are now covering advanced breast imaging screenings, which can be more accurate for women with dense breasts than standard mammography. Another option is waiving co-pays for chronic condition management.

2. Use an Independent Center of Excellence for High-Quality Care, Lower Costs

Guiding employees to high-quality providers for surgeries who make clinically appropriate decisions can save money for both employees and employers. Employers can partner with independent Centers of Excellence, like Lantern, and offer incentives like waived deductibles to encourage employees to use these providers. “You help to incent action and people won’t delay care,” Tibbels said.

3. Focus on Benefits Programs with Hard-Dollar Savings

Employers want to do the right thing and make care affordable for employees. But benefits leaders are also fiduciaries of their plans. So when evaluating healthcare solutions, it’s important to focus on those that offer hard-dollar savings, not just soft-dollar savings through avoided procedures. “Look for better negotiated rates through narrow COEs, which can lead to real cost reductions,” Dr. Tibbels said, adding to accurately measure savings, employers need to understand their current healthcare spending. “If you’re going to have certainty about your savings, then you need to kind of start at ground zero, asking: ‘how much am I actually spending on healthcare.’”

Understanding healthcare spending can be complex, however. Costs vary depending on the type of care, the location and other factors. That’s why it’s important to work with partners who provide transparent methodologies for calculating true savings. Lantern, for example, offers a transparent approach to help employers accurately assess their healthcare spending and identify opportunities for savings.

Creating a Work Culture that Invests in Health

By incentivizing prevention, partnering with high-quality providers, and focusing on hard-dollar savings, employers can improve health outcomes and reduce healthcare costs. Taking these steps not only benefits employees’ well-being but also contributes to the company’s bottom line.

Employers play a crucial role in helping employees prioritize their health, and it all comes down to getting employees on board by showing the benefits in action. “Take these case studies of people who took a proactive approach to their health [and share them],” Dunn said. “It’s those storytelling elements that give people the courage to stick with it. Also, highlight the cost savings programs. Everyone loves saving money.”