According to a recent survey, about 31 million Americans racked up a staggering $74 billion in medical debt last year. This finding comes from a West Health-Gallup survey that highlighted how financial burdens from healthcare affect many households across the country.
The survey revealed that 12% of U.S. residents borrowed money for healthcare costs in just one year. More than half, specifically 58%, expressed worry about accumulating medical debt if they ever faced a serious health issue. This study involved over 3,500 adults from all 50 states and Washington D.C., conducted in November 2024.
Young adults, as well as Black and Hispanic individuals, were particularly affected by medical debts. The data shows that 18% of those aged 18 to 29 had borrowed money for health expenses, compared to only 9% of adults aged 50 to 64 and just 2% of those 65 and older. While younger adults borrowed less, their issues with healthcare costs are still very real.
The survey highlights ongoing concerns. Many Americans fear that proposed cuts to Medicaid, aimed at saving $880 billion, could worsen their healthcare affordability. The Consumer Financial Protection Bureau (CFPB), which aims to protect consumers from burdensome debts, also faces uncertainty. The recent changes in leadership could impact its ability to assist those struggling with medical debts.
Tim Lash, president of West Health, emphasized the pressing need to address healthcare costs so families don’t end up borrowing just to access necessary care. “The cost of health care continues to be a major burden,” he said, underscoring the financial strain many face.
Worries about medical debt are widespread and affect various demographics. Among adults 65 and older, more than half are concerned about facing medical debts due to health issues. The anxiety doesn’t just stop at age; it cuts across gender and racial lines as well. Over 60% of Black and Hispanic adults share concerns about medical debt, and 62% of women worry about it in comparison to 54% of men. Working-class families, especially those earning between $24,000 and $48,000, express the most concern, with 69% worried about affording medical expenses.
Past surveys suggest many people, fearing high costs, choose to skip treatments or avoid necessary healthcare altogether. If Medicaid cuts go through, experts warn that low-income families could face greater difficulties, leading to increased borrowing for medical needs.
Lastly, the fate of the CFPB’s recent rule that aims to protect consumers from having their medical debt used against them in lending decisions is in limbo. Legal challenges have delayed this protection, raising concerns about how this will affect those already struggling with medical bills. Patricia Kelmar from U.S. PIRG Education Fund points out that medical debt can disproportionately damage credit scores, even if the debts aren’t valid, making consumer protections all the more critical.
In summary, the struggle with medical debt continues to be a significant issue for many Americans, affecting a wide range of demographics. Addressing these challenges is essential for ensuring that healthcare remains accessible without causing financial hardship.
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