One in Three Insured Americans Burdened by Medical Debt, Survey Reveals

Even individuals with health insurance are accumulating substantial medical debt, according to a recent analysis by the Commonwealth Fund. The nonprofit health policy research group reported Thursday that one in three privately insured Americans owes money for medical care, with hospital visits identified as the leading cause.

Nearly two-thirds of U.S. adults with private coverage reported carrying debt related to hospitalizations. Additionally, the survey highlighted financial obligations stemming from routine care, including primary doctor visits and diagnostic testing.

Sara Collins, a health economist at the Commonwealth Fund and the study’s lead author, attributed the crisis primarily to gaps in insurance coverage regarding out-of-pocket expenses. “The primary reason why these people have debt is about the extent to which their insurance covers their out-of-pocket costs,” Collins said.

The financial impact is severe for many households. Approximately half of Americans with medical debt owe at least $2,000. To manage these bills, 37% of respondents reported depleting their savings, while 30% admitted to reducing spending on basic necessities such as food, heating, and rent. Another 30% indicated they had delayed or skipped necessary medical treatment due to cost concerns.

Collins emphasized that most families operate on tight budgets with little financial flexibility. “Most Americans don’t have a lot of extra cash lying around, and when they are hit with an unexpected expense in a month when their income is allocated across all necessities of life, it can push people into medical debt they are unable to pay,” she explained. She noted that low-income individuals are particularly vulnerable, as medical bills can easily disrupt regimented household budgets.

The findings are based on a telephone and online survey of a nationally representative sample comprising 6,353 adults.

For those struggling with heavy medical debt, Collins advised taking proactive steps. She recommended that consumers scrutinize bills for errors and dispute any incorrect charges. Despite fears that non-payment could damage credit scores, Collins stressed the importance of ensuring bills are accurate. Additionally, when insurance claims are denied, patients are encouraged to negotiate payment plans with providers and insurers to reduce out-of-pocket costs.