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Most Americans have health insurance, but that doesn’t alleviate concerns that a medical emergency could put them in financial crisis, research shows.
Of the 1,507 Americans surveyed in February by financial services firm JG Wentworth, nearly 97% said they had health insurance. Even so, a whopping 94.7% of insured people said they were still worried about hospital bills. The average tab of $4,354 is the financial breaking point for Americans, according to the data. Seven in 10 Americans say an unexpected medical expense of less than $10,000 would prevent them from covering essential expenses.
According to KFF, a nonprofit health policy researcher, the average cost of just one night in the hospital in 2024 was $3,297. According to KFF, the average length of stay in 2023 was 5.8 days.
According to KFF, medical debt is widespread, with Americans totaling $220 billion in debt. The JG Wentworth poll found that 85.1% of respondents already had medical debt, and 81.3% said they owed between $1,000 and $10,000..
“Health insurance is in place to reduce health care costs, but it does not completely eliminate health care costs,” a JG Wentworth spokesperson said in an email. “Even those who are well-insured can face deductibles of up to several thousand dollars and surprising out-of-network charges from some providers. Insurance can limit the financial impact of serious medical emergencies, but it cannot prevent you from receiving large bills after routine procedures.”
insurance gap
A study by the Commonwealth Fund, a private foundation focused on medical issues, found that the reason a single hospital visit can take a toll on a household’s finances is because nearly one in four Americans (23%) are underinsured. Underinsurance means that even though people have insurance, they are exposed to high out-of-pocket costs or costs they cannot afford.
JG Wentworth’s survey reflects some of that uncertainty, with only 12.4% of insured respondents feeling very confident that their insurance will protect them from financial hardship in the event of a serious medical problem. According to the report, 92% have delayed or even avoided seeking medical care because of cost concerns.
The data showed that among respondents with long-term symptoms, almost one in three (31.8%) said their symptoms worsened because they could not afford medication. Almost 96% said they had to choose between medicine and essential items such as food.
How long will medical debt last?
Only 6.7% of those surveyed by JG Wentworth believed they would be able to pay off their medical debt within a year. Almost 90% think it will take 1 to 3 years to repay their debt.
According to the survey, only a small group of 2.9% expect it will take more than three years to repay their debt, and 0.9% do not expect to repay it at all. According to a 2019 study published in the American Journal of Public Health, medical expenses are the number one reason for filing for bankruptcy, accounting for nearly 67% of cases annually.
How can people manage medical debt?
Experts say the best way to manage health care costs is to plan.
A JG Wentworth spokesperson said: “Know your out-of-pocket costs, out-of-pocket limits and coinsurance rates before you need them.” “Before your elective procedure, make sure all your providers are in-network. If you have a high-deductible plan, consider paying into a Health Savings Account (HSA). Contributions are tax-advantaged and balances roll over indefinitely. Always maintain available savings to cover at least half of your out-of-pocket limit.”
HSAs received a boost last summer with President Donald Trump’s signature tax and spending bill. The bill makes HSAs available to tens of millions more Americans by allowing more Affordable Care Act insurance plans, direct primary care arrangements, and plans with telehealth coverage. HSA plans are a popular savings vehicle among financial advisors because contributions are tax-free, funds grow tax-free, and withdrawals are tax-free when used for qualified expenses.
Experts also advised people to have their medical expenses listed on their statement and double-check it. Check for errors or overcharges. These things happen more often than you might think.
The same thing happened to former U.S. Army Surgeon General Jerome Adams. Posted A copy of his nearly $5,000 emergency hospital bill. – after Insurance paid for that part. At the time, he told USA Today he was “stunned” by the bill and had begun the process of objecting to it.
Investigating and disputing medical bills can be a daunting task, but there are companies like Goodbill and Resolve that can help lower your medical costs. They get paid by taking out a portion of their savings.
Another option is to inquire about financial aid programs before paying. “Many hospitals offer these, but they are not always advertised,” said a JG Wentworth spokesperson.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
