With healthcare costs rising and managed care costs shifting, out-of-pocket expenditures for healthcare products and services are expected to rise above $365 billion in 2011, despite a slowing market for elective out-of-pocket medical procedures, according to Out-of-Pocket Healthcare Spending and Payment Options in the U.S. Report.

In 2006, total consumer out-of-pocket expenditures were estimated at just above $250 billion, having risen by 16.6% per year since 2001. Through 2011, spending growth is expected to slow to 7.8% per year as salary growth lags, healthcare cost increases, and consumers become increasingly unable to afford these rising medical charges.

As Managed Care Organizations (MCOs) have increasingly transferred costs to participants, consumers' out-of-pocket healthcare costs have risen from about $250 per year in 1980 to almost $900 in 2006. In response, consumers have had to turn to multifaceted financing tools including credit cards, short- and long-term loans, FSAs and HSAs, and other payment options to stave off the increasing burden of out-of-pocket health expenses.

"Virtually all U.S. consumers will face rising out-of-pocket expenditures for healthcare over the next few years, but the high-risk groups, including Medicaid recipients, disabled persons, senior citizens, the mentally ill, obese persons, and persons with chronic medical conditions, will face even greater increases," notes Tatjana Meerman, the publisher of Packaged Facts. "Although patient financing is more commonly used for elective procedures, programs are increasingly being offered for non-elective procedures as a way for consumers to meet expenses related to high deductible healthcare plans and/or charges that exceed plan coverage
limits."