HIGH COST OF HEALTHCARE FOR SINGLE WOMEN

Women spend $15 billion more annually on medical expenses than men. Single women spend nearly twice as much of their income on health insurance as single men. On average, single women spent $2,406 on health insurance in 2020, representing a sizable 6.8% of their annual income. However, single men paid $1,896 for health insurance, on average, or only 3.9% of their larger yearly income despite what we know about the long standing and insidious wage gap.

The disproportionate financial burden placed on women throughout their lives for healthcare. Recent analyses reveal a stark reality: single women consistently spend more on health insurance, auto insurance, and life insurance than their male counterparts. This financial strain intensifies as women age, pointing to a systemic issue that penalizes women for living longer.

The analysis of U.S. Bureau of Labor Statistics (BLS) reveals that single women, on average, spent nearly twice as much of their income on health insurance compared to single men. In 2020, women dedicated 6.8% of their annual income to health insurance, while men spent only 3.9%. This financial gap persists across all income levels, with even more significant disparities for those earning less than $15,000 annually.

You may ask, “how is this happening?” Men and women pay the same price for insurance premiums. But women fork over $15 billion more annually for out-of-pocket medical expenses like copays and deductibles, —pregnancy costs aside. The spending on healthcare can be attributed to usage—women utilize health insurance 10% more than men, on average. But insurance companies tend to cover a smaller portion of the cost of services women need compared to the cost of services men need, researchers found.

Single women spend nearly twice as much of their income on health insurance as single men.

As women age, the disparity in health insurance spending widens. By ages 55 to 64, single women were paying 4.8% of their income for health insurance, compared to men's 3.6%. This gap further expands to 11.7% for women aged 65 and older, surpassing men's 8.4%. Women's prime earning years (ages 35 to 44) witness them spending almost 3% of their income on health insurance, while men's peak spending occurs a decade later (ages 45 to 54) at 2.7%.

The financial burden isn't limited to health insurance; women consistently allocate higher percentages of their income to auto and life insurance. On average, women put 2.4% of their income towards auto insurance, compared to men's 1.9%. Additionally, women spend 0.7% of their income on life insurance, while men contribute only 0.4%.

Insurers justify the gender-based pricing by citing health risks, emphasizing women's higher healthcare utilization, complex medical issues, and longer life expectancy. The average life expectancy of 79.9 for women in the U.S., compared to 74.2 for men, contributes to this discrepancy. Insufficient regulations, such as the exemption of large companies and private insurance options from the Affordable Care Act (ACA), perpetuate gender-based insurance rates.

The data is a reminder of the systemic inequalities embedded in healthcare financing. Women face higher financial hurdles across the spectrum of insurance throughout their lives, highlighting the urgent need for policy reforms to address gender-based pricing. Achieving gender equality requires dismantling these financial barriers, ensuring that single women are not penalized for living longer and demanding equitable healthcare access for all.