WASHINGTON, D.C. – March 5, 2025 – More than 31 million Americans (12%) report needing to borrow about $74 billion last year to pay for healthcare despite most having some form of health insurance, according to a new survey from West Health and Gallup. Nearly one-third (28%) report being "very concerned" that a major health event could throw them into debt.
The survey found almost 20% of Americans aged 49 and under needed to borrow money to cover medical costs compared with just 9% of those 50 to 64. Women between the ages of 50 and 64 were twice as likely as men in the same age group to say they had to borrow (12% vs. 6%). Two percent of Medicare-eligible adults (those over the age of 65) reported having to borrow.
"Too many Americans are racking up medical debt whether they have health insurance or not," said Tim Lash, President, West Health Policy Center, part of West Health, a family of nonprofit organizations focused on healthcare and aging. "A high-priced healthcare 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."
Black (23%) and Hispanic adults (16%) were significantly more likely to report having borrowed money than White (9%) adults. The biggest disparities were found among adults under the age of 50. Black adults aged 18-49 (29%) were the biggest borrowers followed by Hispanic adults (19%) and White adults (14%) in the same age range. Americans with children under the age of 18 were twice as likely to report borrowing compared to households with no children (19% vs. 8%).
Breakdown of Borrowing
Americans collectively borrowed about $74 billion to pay for healthcare last year, with more than half (58%) borrowing $500 or more and 41% borrowing $1,000 or more. Fourteen percent borrowed $5,000 or more.
Concerns Over Medical Debt Across Age, Race and Income
Most Americans (58%) report being at least somewhat concerned that a major health event could land them in debt, including 28% who say they are "very concerned." Concerns span income levels, with more than six in 10 households with annual incomes under $120,000 worried. Fewer higher earners were concerned, but 40% of households making over $180,000 report they too have concerns.
Even with Medicare eligibility, more than half (52%) of people aged 65 or older say they are at least somewhat concerned they could go into medical debt if they suffered a major health event. Concerns also run high among Black adults (62%), Hispanic adults (63%) and women (62%). Only 14% of respondents say they are not concerned at all.
"It is clear that high healthcare costs continue to burden the American people, and financial insecurity around care is not limited to any one demographic," said Dan Witters, director of wellbeing research at Gallup. "These findings underscore the need for solutions that make healthcare more affordable for all Americans."
Methodology
The West Health-Gallup Survey was conducted via web Nov. 11-18, 2024, with a nationally representative sample of 3,583 U.S. adults aged 18 and older. The margin of sampling error is ±2.1 percentage points at the 95% confidence level.
About West Health
Solely funded by philanthropists Gary and Mary West, West Health is a family of nonprofit and nonpartisan organizations that include the Gary and Mary West Foundation and Gary and Mary West Health Institute in San Diego and the Gary and Mary West Health Policy Center in Washington, D.C. West Health is dedicated to lowering healthcare costs to enable seniors to successfully age in place with access to high-quality and affordable health and support services that preserve and protect their dignity, quality of life and independence. Learn more at westhealth.org .
About Gallup
Gallup delivers analytics and advice to help leaders and organizations solve their most pressing problems. Combining more than 80 years of experience with its global reach, Gallup knows more about the attitudes and behaviors of employees, customers, students and citizens than any other organization in the world.
