Americans borrowed $74 billion to cover health care costs last year

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More than 31 million Americans — 12% of U.S. adults — borrowed a staggering $74 billion in 2024 to pay medical bills, new survey from West Health and Gallup finds.

Despite most having health insurance, many Americans struggled with high out-of-pocket costs, with younger adults, women and racial minorities disproportionately affected. The survey, conducted in November 2024 with a sample of 3,583 U.S. adults, underscores the financial strain caused by U.S. health care costs.

Nearly one-third (28%) of survey respondents were “very concerned” that a major health event could throw them into debt, and 58% expressed at least some concern.

Demographic disparities in borrowing trends

Borrowing rates varied significantly by age and demographic group. Younger adults were hit the hardest, with nearly one in five (18%) of those aged 18-29 borrowing money to cover medical costs. In contrast, only 2% of those aged 65 and older — who are more likely to have Medicare coverage — reported borrowing for health care. However, 52% of Americans 65 and older still worry about going into medical debt if they suffer a major health event.

Women were more likely than men to take on medical debt, particularly in the 50-64 age bracket, where 12% of women borrowed, compared to 6% of men. Additionally, Black (23%) and Hispanic (16%) adults were significantly more likely to report borrowing money for medical expenses than White adults (9%).

Americans with children under the age of 18 borrowed money at rates twice as high compared to households with no children (19% vs. 18%).

“Too many Americans are racking up medical debt whether they have health insurance or not,” said Tim Lash, president, West Health Policy Center. “A high-priced health care system that requires Americans to take out loans or make painful tradeoffs just to stay healthy is in desperate need of policy reform or things will get even worse.”

Financial strain

The study found that, of those who borrowed money for health care, 58% took out at least $500, while 41% borrowed $1,000 or more. Fourteen percent of respondents borrowed $5,000 or more to cover their medical costs.

Medical debt concerns affected all income levels, with more than six in ten households earning under $120,000 annually expressing concern about their ability to afford unexpected medical costs. Even among households making over $180,000, 40% reported concerns about potential medical debt.

“It is clear that high health care costs continue to burden the American people, and financial insecurity around care is not limited to any one demographic,” Dan Witters, director of wellbeing research at Gallup, said in a news release. “These findings underscore the need for solutions that make health care more affordable for all Americans.”

Medical debt disproportionately affects younger adults, racial minorities, and families with children. The study suggests that without policy interventions, rising healthcare costs will continue to drive financial hardship.