According to a new survey conducted by Gallup in collaboration with West Health, 31 million adults in the United States, representing approximately 12% of the adult population, had to borrow a staggering $74 billion to cover medical expenses last year. This distressing situation affects even those with health insurance, highlighting a significant issue within the healthcare system.

Concerns About Medical Debt

Nearly one-third of the 3,500 individuals surveyed expressed a strong apprehension about potentially incurring substantial medical debt due to a major health event. Despite possessing some form of healthcare coverage, these individuals still feel vulnerable to financial hardships when accessing necessary medical services.

“What’s very visible here is families are forced to take out loans and borrow to cover expensive care that is needed,” said Tim Lash, president of West Health. “These big numbers are concerning, but the humanity is lost in the billions and trillions as we reduce this down to what the lived experience is of the American individual and families.”

Trade-offs Faced by Families

To avoid accumulating debt, families often make difficult trade-offs, including reducing their grocery budgets or delaying rent payments to access required healthcare. This dilemma illustrates the financial strain many face in a healthcare system that is increasingly costly.

Demographics of Borrowing

The survey findings reveal a significant generational divide in borrowing for healthcare. Almost 20% of adults aged 18 to 28 reported having taken out loans for medical expenses. In contrast, only 9% of individuals aged 50 to 64 and a mere 2% of seniors aged 65 and above reported similar borrowing. This discrepancy can be attributed, in part, to Medicare providing comprehensive coverage for older Americans.

The Burden of Medical Debt

As of mid-2024, medical debt across the United States has soared to at least $220 billion, according to data from the American Hospital Association. The burden of healthcare bills continues to be a significant factor contributing to personal bankruptcies in the country.

“We need reforms to find savings that can trickle down to the individual, so that these circumstances — of making what should be unnecessary trade-offs — aren’t the condition moving forward,” Lash emphasized.