America’s seniors report spending $22 billion from savings to cover health care costs

One of the biggest threats to retirement solvency may be the cost of health care and prescription drugs.

A study by West Health and Gallup shows that in the past 12 months, seniors have withdrawn an estimated $22 billion from their long-term savings for health-care-related expenses. The average amount of people pulled out was $3,789.

The report, The U.S. Healthcare Cost Crisis, included a nationally representative survey of more than 3,500 adults.

“Americans in large numbers are borrowing money, skipping treatments and cutting back on household expenses because of high costs, and a large percentage fear a major health event could bankrupt them,” the report said.

Key findings:

• 10% of Americans 65 and older did not seek needed treatment in the past 12 months because of the cost of care.

• About 7 million seniors couldn’t afford to pay for their prescribed medication in the past 12 months.

• 80% of the prescriptions seniors can’t afford are used to treat somewhat serious or very serious health conditions.

• 92% of seniors believe the cost of health care will not improve or will get worse.

But it’s not just seniors who worry about the cost of their health care.

The report found that 45% of Americans are afraid they will have to file for bankruptcy protection if faced with a major health crisis. In the past year, Americans reported borrowing an estimated $88 billion to cover health care costs, according to the West Health and Gallup report.