Even With Private Insurance, Americans Are Drowning in Medical Debt — 1 In 3 Still Paying Off Healthcare Bills: Survey

Americans with private health insurance are still struggling with medical bills, with some taking on debt, delaying needed care, and using savings to cover health expenses.

The Commonwealth Fund research, published Thursday, found that 32% of working-age adults with private insurance are paying off medical bills or debt over time. About 68% reported worry or anxiety over medical debt, while 30% said they had delayed or avoided needed care.

Medical Debt Burden

Hospital services were the most common source of debt, cited by 64% of those paying medical bills over time. Among those with medical debt, 46% owed $2,000 or more, while about one in four said their debt had been sent to a collection agency or reported to a credit bureau.

The report also found that 36% of privately insured adults said they would not be able to pay an unexpected $1,000 medical expense within 30 days.

What Can Be Done?

The report groups policy responses into three areas: "Downstream: Alleviate medical debt after people incur it"; "Upstream: Prevent the accumulation of medical debt"; and "At the source: Address the central flaws in our health system that make the U.S. a medical debt outlier among peer nations."

Nearly everyone surveyed supported interest-free payment plans, hospital financial assistance, and removing medical debt from consumer credit reports. Currently, most states allow medical debt to appear on credit reports under certain conditions or have no limits. Only Illinois and Minnesota require hospitals to offer a payment plan before sending a bill to collections.

The report says Congress could ban medical debt from all credit reports. About 15 million people have medical bills on their credit reports, totaling an estimated $49 billion.

It also calls for stronger hospital financial assistance requirements, easier access through centralized online portals, eliminating deductibles in commercial insurance plans, and capping provider payment rates.

In addition, the report calls for expanding coverage to remaining uninsured Americans, saying broader coverage could help address the medical debt problem.

The findings come as healthcare affordability remains a broader concern. Billionaire entrepreneur Mark Cuban has argued that a roughly $3,700 average Affordable Care Act deductible can make care difficult to afford. In June, Market commentator The Kobeissi Letter noted that employer health-benefit costs are expected to rise 6.7% in 2026 to at least $18,500.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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