Millions of Americans Struggle with Medical Debt Despite Having Health Insurance

A staggering 31 million Americans (12%) had to borrow approximately $74 billion last year to cover healthcare costs, despite most having some form of health insurance, according to a new survey by West Health and Gallup.

The report highlights widespread concerns over medical expenses, with 28% of Americans saying they are “very concerned” that a major health issue could lead to financial debt.

Younger Americans and Women Hit Hardest
The survey found that nearly 20% of Americans under 50 had to borrow money for medical bills, compared to 9% of those aged 50 to 64. Women in the 50-64 age group were twice as likely as men to take on medical debt (12% vs. 6%). In contrast, only 2% of Medicare-eligible adults (65 and older) reported borrowing for healthcare expenses.

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The Growing Healthcare Affordability Crisis
These findings underscore the rising cost of healthcare in the U.S., even for insured individuals, and the financial strain medical expenses place on millions of households. As healthcare costs continue to rise, more Americans may find themselves struggling with medical debt and seeking alternative ways to cover essential treatments.

“Too many Americans are racking up medical debt whether they have health insurance or not,” said Tim Lash, President, West Health Policy Center, part of West Health, a family of nonprofit organizations focused on healthcare and aging. “A high-priced healthcare system that requires Americans to take out loans or make painful tradeoffs just to stay healthy is in desperate need of policy reform or things will get even worse.”

Black (23%) and Hispanic adults (16%) were significantly more likely to report having borrowed money than White (9%) adults. The biggest disparities were found among adults under the age of 50. Black adults aged 18-49 (29%) were the biggest borrowers followed by Hispanic adults (19%) and White adults (14%) in the same age range. Americans with children under the age of 18 were twice as likely to report borrowing compared to households with no children (19% vs. 8%).
Even with Medicare eligibility, more than half (52%) of people aged 65 or older say they are at least somewhat concerned they could go into medical debt if they suffered a major health event. Concerns also run high among Black adults (62%), Hispanic adults (63%) and women (62%). Only 14% of respondents say they are not concerned at all.

“It is clear that high healthcare costs continue to burden the American people, and financial insecurity around care is not limited to any one demographic,” said Dan Witters, director of wellbeing research at Gallup. “These findings underscore the need for solutions that make healthcare more affordable for all Americans.”