Gender Disparity in Health Care Costs: Working Women Spend $15.4 Billion More than Men
A recent analysis of employer-sponsored health plans by Deloitte Consulting reveals that high health care costs disproportionately affect women in the U.S. workforce. Working women spend an additional $15.4 billion annually on out-of-pocket health expenses compared to their male counterparts. The study found that women, on average, spend 18% more than men on co-pays and deductibles, excluding costs related to pregnancy and maternity. Interestingly, despite women's total health expenditures being only 10% higher than men, they bear a significantly higher financial burden.
Identifying the Root Cause
Dr. Kulleni Gebreyes, U.S. chief health equity officer at Deloitte Consulting, highlights the issue of gender pay disparity and its correlation with higher health care costs for women. This combination creates a disproportionate financial burden for working women.
Factors Contributing to Higher Costs
Women tend to utilize more medical care than men, partly due to annual gynecological exams and the expensive nature of breast cancer imaging. While annual exams are often covered fully, subsequent follow-ups resulting from these visits incur co-pays and trigger deductibles. Many of these services are more costly than the typical deductible, leading to a higher cost-sharing burden.
The Deloitte analysts propose that employers can bridge the $15.4 billion gender gap in cost-sharing through enhanced benefits design. This could be achieved at an estimated cost of $133 per employee per year, or approximately $11 per month.
Advocating for Equitable Design Processes
Dr. Gebreyes emphasizes the importance of companies examining their data to identify and address existing gaps. By adopting a more equitable design process, businesses can develop health benefits that meet the needs of their workforce. This approach has the potential to alleviate the financial strain faced by working women and promote greater gender equality in health care costs.
In conclusion, the significant disparity in out-of-pocket health expenses between working women and men highlights the urgent need for equitable solutions. By addressing gender pay gaps and implementing enhanced benefits design, businesses can play a crucial role in reducing this financial burden and fostering a more equitable health care system.
Gender Gap in Health Care Costs: Implications for New Business Formation
The recent revelation of a significant gender disparity in health care costs, with working women spending $15.4 billion more annually than men, raises critical questions for new businesses. This discrepancy, highlighted in a Deloitte Consulting analysis, is largely due to women spending, on average, 18% more on co-pays and deductibles, despite their total health expenditures being only 10% higher than men.
Understanding the Underlying Causes
Dr. Kulleni Gebreyes, U.S. chief health equity officer at Deloitte Consulting, points to the gender pay gap as a key factor contributing to this disparity. This issue, coupled with women's higher health care costs, places a disproportionate financial burden on working women.
The Role of Health Care Utilization
The study also found that women tend to utilize more medical care than men, partly due to annual gynecological exams and breast cancer imaging costs. While initial exams are often fully covered, follow-up visits incur co-pays and trigger deductibles, leading to a higher cost-sharing burden for women.
Addressing the Gender Gap in Health Care Costs
Deloitte analysts suggest that employers could bridge this gender gap by enhancing benefits design, at an estimated cost of $133 per employee per year. Dr. Gebreyes stresses the need for businesses to examine their data, identify gaps, and adopt a more equitable design process.
For new businesses, this gender disparity in health care costs presents both a challenge and an opportunity. By addressing this issue head-on, new businesses can not only foster a more equitable workplace but also differentiate themselves in a competitive market. This approach could potentially attract a diverse workforce and create a more inclusive and equitable business environment.
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