Despite having health insurance, millions of Americans were forced to borrow a staggering $74 billion last year just to cover medical expenses.
A new West Health-Gallup survey reveals that 12% of U.S. adults—approximately 31 million people—took out loans to pay for healthcare.
Medical debt is no longer a crisis affecting only the uninsured. Even those with coverage are struggling under the weight of high deductibles, copays, and coverage gaps.
Nearly six in ten Americans worry that a medical emergency could land them in debt, and for good reason.
As healthcare costs continue to outpace wages and inflation, many are left with an impossible choice: take on debt or forgo necessary medical care.
Not all Americans are equally burdened by medical debt. Younger adults are hit particularly hard.
Nearly one in five adults under 50 reported borrowing money for medical expenses, compared to just 9% of those aged 50-64 and only 2% of seniors over 65 who are covered by Medicare.
Gender also plays a role, with women—especially those aged 50-64—being significantly more likely than men to take on medical debt.
Racial disparities are even more glaring. Among Americans under 50, Black adults (29%) and Hispanic adults (19%) borrowed at far higher rates than White adults (14%).
Households with children under 18 were twice as likely to borrow for healthcare than those without children, with 19% taking on debt compared to just 8% of child-free households.
For those who borrowed money to pay for medical bills, the amounts were often significant.
More than half (58%) reported borrowing at least $500, while 41% took on $1,000 or more.
At the extreme, 14% of borrowers said they had to take out more than $5,000 just to cover medical costs.
While younger adults were more likely to borrow, older adults who did so tended to take on higher debt.
The median amount borrowed was $300 for adults aged 18-29, but that figure rose to $750 for those aged 30-49 and $3,000 for those over 50.
Even among seniors, who are largely protected by Medicare, those who did borrow reported high sums—underscoring critical gaps in coverage.
The financial burden of medical debt is only part of the problem. The fear of falling into debt due to medical costs looms large over millions of Americans.
A majority—58%—worry that a health crisis could push them into debt, with 28% saying they are “very concerned” about this possibility.
This anxiety is not limited to low-income households. Over 60% of Americans earning under $120,000 per year fear medical debt, but even among those making over $180,000, 40% still express concern.
Even Medicare recipients are not immune—more than half of seniors worry that a major health event could leave them financially exposed.
Without significant changes to make healthcare more affordable, millions will continue to find themselves in financial peril just for seeking medical treatment.