Waiting for Healthcare Spending Until Tax Refunds... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Waiting for Healthcare Spending Until Tax Refunds Come In

Waiting for Healthcare Spending Until Tax Refunds Come In

The content is accurate at the time of publication and is subject to change.

Tax refunds can go for everything from electronics to travel, but for many people getting a tax refund means being able to pay for out-of-pocket medical and dental visits, according to a new study by the JPMorgan Chase Institute, finding that there is a 60% upswing in healthcare visits the week after people have their tax refund in hand.

In the Deferred Care: How Tax Refunds Enable Healthcare Spending study, Chase found that 83% of people paid for out-of-pocket expenses using debit cards, with 62% paying when they were at the doctor’s office.

What about credit cards? There was not a comparable pattern with credit cards, all of which points to cash flow being king when it comes to healthcare expenses during tax season.

Income and heading to the dentist matter

Families with a low emergency fund tended to be more affected by this trend, and more often use their refunds for health care expenses.

People with high check account balances ($3,500 or more) only upped their spending on healthcare by 11% while people with less than $536 in their account upped their spending by 220% when their tax refund was in hand.

While people often knew how much they were getting back, the study found that they still waited for the refund to arrive before spending it–even on healthcare.

“We already knew that many families don’t have enough of a cash buffer to cover the cost of a major medical emergency. Now we also see that a significant number of Americans put off going to the doctor and other routine health services until they actually have cash in their account, even when they know that it is coming,” said Diana Farrell, President, and CEO, JPMorgan Chase Institute.

“In addition to being a major personal finance issue, this link between healthcare and cash flow could have significant consequences for public health. We need to better understand the connection between financial health and physical health, including evaluating the consequences of deferring care while waiting for cash to arrive,” she said.

Can I see the dentist, please?

They also found that just about half of the time people used their refunds to head to the dentist and the doctor after their tax refund arrived. Yet dentists were the big winners during this season, with 32% of spending that has been put off until a refund is in hand going to them.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard is Working the Gig Economy
MasterCard is Working the Gig Economy

Posted: February 01, 2018

MasterCard will be launching the Inclusive Futures Project, a new program, offering gig and next-generation workers a variety of products and services, such as budgeting tools, real-time payments, and financial education. Continue reading
The New Chase Starbucks Rewards Visa Card
The New Chase Starbucks Rewards Visa Card

Posted: February 08, 2018

Starbucks and Chase have joined forces to roll out the Starbucks Rewards Visa Card, letting cardholders earn rewards every time they buy a latte, a cappuccino or anything else at Starbucks - and they also earn rewards on all other... Continue reading
Earning More Rewards at Whole Foods with the Amazon Prime Rewards Visa
Earning More Rewards at Whole Foods with the Amazon Prime Rewards Visa

Posted: February 28, 2018

The acquisition of Whole Foods by Amazon has upped the ante for Amazon Prime Rewards Visa cardholders because they now earn 5% back when shopping at the Whole Foods Market, whether they are buying groceries, organic vegetables, body care... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!