The prevalence of medical borrowing is high
March 18, 2025
Source: Gallup, March 5, 2025
West Health and Gallup published data last week that showed that many Americans borrowed money to pay for medical care. They reported that 12% of Americans state that they had borrowed money to cover medical bills in the previous year. Overall, they calculated that Americans borrowed $74 billion to finance medical expenses in 2024. Borrowing overall was higher for Black (23%) and Hispanic (16%) people than for White (9%) people. They reported that 41% of those who had borrowed money for medical care had borrowed $1,000 or more. Fifty-eight percent of respondents reported that they were at least somewhat concerned about costs of medical care, including 40% of those who reported household income of over $180,000 per year.
Although more of those under age 50 reported borrowing to pay for medical bills, adults over 50 reported borrowing substantially more.
Source: Gallup, March 5, 2025
The survey was a nationally representative sample with over 3,600 responses and a confidence interval of +/-2.5%. Money is “fungible” (can be used for any purpose), so that when respondents report they have taken on debt to cover the costs of medical care, this likely reflects trouble affording other goods and services, too.
Implications for employers:
Many adults have trouble making ends meet and affording their health care, and this includes many who are on employer-sponsored health insurance.
Increases in total medical premium costs are making some employers consider shifting more costs to employees. This survey data suggests that many employees cannot afford additional out of pocket costs.
Rising out of pocket costs decrease health equity.
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Tomorrow: Some reflections on the fifth anniversary of the COVID-19 pandemic