Despite insurance coverage, study finds massive borrowing in the U.S. for healthcare

ATLANTA — When you get sick, you get treatment, but for millions of Americans, it might mean you put yourself in debt.

Channel 2 Consumer Investigator Justin Gray and Boston25′s Jim Morelli took a closer look at a new report that shows how big of a problem the high cost of medical care has become for the United States, and its people.

At least 90% of Americans have health insurance, but that’s not keeping a significant portion of them from going into debt for their healthcare.

A new report by West Health and Gallup finds that more than 31 million adult Americans—or about 12%—had to borrow money in 2024 to pay for medical treatments.

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The report found borrowing more common in younger adults, with 51% of those under age 50 taking out medical loans. But the amount borrowed rose with age to a median of $3,000 in those older than 50. Nearly 40% report borrowing $1,000 to $10,000.

Sebastian Tello Trillo, PhD, a professor of public policy at the University of Virginia, said the situation may be even worse than the report suggests.

“There are a lot of people, they get a hospital bill and they’re actually going to pay their hospital bill,” he said. “But that also means they’re not going to pay for other stuff. I’m going to get behind on my car loan, maybe. I’m going to get behind on my mortgage payment or my rent.”

And on the other end of the spectrum are Americans who can’t afford to pay for healthcare and have no way to borrow, he said. So they go without.

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“It’s similar, in some ways, to ‘do you have money for a flat tire,’” said Tello Trillo, who blames the high cost of healthcare in the U.S. on the fact everything’s more expensive in the first place, administrative fees, a lack of straightforward pricing and the sophisticated level of treatments available.

The report found that concerns about going into debt for medical care lessen as income rises, but it doesn’t disappear, even in households earning $180,000 or more.

Liz McCabe, who works at a dental office in Boston, said the situation is out of control.

“I have had to borrow money in the past to pay for my medical expenses,” she said. “I’m in debt making payments on medical bills. It’s an expense we have to pay on every week out of our paychecks.”

In Westwood, Vicki Matton was surprised to hear the borrowing was that high.

“I absolutely think the system is broken,” she said. “The fact you work your whole life and have to pay as much as we do to get mediocre healthcare? I think that’s pretty sad.”

Bruce Warren, a father of three, said the situation is awful.

“You should not have to be in debt to be healthy in this country, period, end of story,” he said. “Universal healthcare is the only way we’re gonna get out of this.”

If you do end up owing medical debt, Channel 2 Consumer Advisor Clark Howard had the following advice to get through it and clear the slate. He said to research charity options that can cover your medical expenses. One, called Dollar For, was founded to do exactly that.

Jared Walker founded the nonprofit Dollar For to help consumers apply for charity care at hospitals. However, there’s a catch - Howard said to avoid applying for a medical credit card or charging up your existing cards. Once you do that, you no longer qualify for charity care.

He reminds everyone that even if you don’t qualify for full forgiveness you may qualify for partial forgiveness on a sliding scale. If you don’t qualify for that then negotiate. See how much of a reduction you can get in your bill and ask a lot. If you don’t ask, you don’t get it.

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