According to a new survey by West Health and Gallup, more than 31 million Americans (12%) reported borrowing about $74 billion in health care costs last year. Nearly one-third (28%) reported “very worried” that a major health incident could put them in debt.
The survey found that nearly 20% of Americans aged 49 need to borrow money to pay for medical expenses, while only 9% of those aged 50 to 64 are aged 50. Women aged 50 to 64 are twice as likely to be males of the same age group as men of the same age group (12% vs. 6%). 2% of Medicare-eligible adults (adults over 65 years of age) must borrow.
“Too many Americans are increasing their medical debt, whether they have health insurance or not,” said Tim Lash, president of the Western Health Center, a part of West Health, a nonprofit family that focuses on health care and aging. “A high-priced health care system that requires Americans to take out loans or make painful trade-offs to stay healthy is a desperate need for policy reforms, otherwise things will get worse.”
Black (23%) and Hispanic adults (16%) were more likely to report borrowing money than white (9%) adults. The biggest difference was found among adults under 50 years of age. Black adults aged 18-49 (29%) were the largest borrowers, followed by Hispanic adults (19%) and white adults (14%) in the same age group. Compared to families without children, Americans with children under 18 years of age reported borrowing is (19% vs. 8%).
Loan decomposition
Last year, Americans collectively borrowed about $74 billion to pay for health care expenses, more than half (58%) borrowed $500 or more, and 41% borrowed $1,000 or more. 14% borrowed $5,000 or more.
Concerns about medical debt across age, race and income
Most Americans (58%) report at least some concerns that major health events could put them in debt, including 28% saying they are “very worried.” Worry about income levels covering, more than six out of 10 households earning less than $120,000 per year are worried. There are fewer people with higher incomes, but 40% of households earn more than $180,000 also have concerns.
Even with Medicare eligibility, more than half (52%) of those aged 65 or older (52%) are at least somewhat worried that they may be responsible for medical debts if they suffer from a major health event. Black adults (62%), Hispanic adults (63%) and women (62%) were also highly concerned. Only 14% of respondents said they didn’t care at all.
“It’s clear that high health care costs continue to bear the burden on the American people, and the financial insecurity around care is not limited to any population,” said Dan Witters, director of welfare research at Gallup. “These findings highlight the need for solutions that make health care more affordable for all Americans.”
Methodology
Western Health – The Gallop Survey was conducted through the Web from November 11 to 18, 2024, with a nationally representative sample of 3,583 American adults aged 18 and older. At 95% confidence, the margins of the sampling error are ±2.1 percentage points.
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