The number of Americans struggling with medical debt has reached its highest level in five years, according to the latest annual survey by Debt.com. The survey, which has polled 1,000 Americans annually since 2020, reveals alarming trends in medical debt, collections, and avoidance of healthcare due to financial strain.
“Inflation may be subsiding, but the damage it wrought will stay with us for a long time,” said Debt.com president Don Silvestri. “Medical debt was a growing problem before inflation. Now it’s becoming a crisis.”
Key Findings
The survey’s key findings underscore the escalating crisis:
- Inflation Impact: In 2024, 79% of respondents stated that inflation has made it harder to pay their medical bills, a significant increase from 57% in 2022.
- Prevalence of Medical Debt: Currently, 66% of Americans have outstanding medical bills or medical debt, up from 46% five years ago.
- Debt in Collections: Half of the respondents (50%) have medical debt in collections, a sharp rise from 28% in 2021.
- Healthcare Avoidance: Over half (52%) avoid medical care because of their debt, compared to 28% in 2022.
Generational Differences in Medical Debt
The data highlights significant generational disparities in medical debt:
- Millennials are the most affected, with 77% reporting outstanding medical bills or debt. This is compared to 72% of Gen X, 71% of Gen Z, and 52% of Baby Boomers.
- More Millennials (62%) have had their medical bills sent to collections than any other generation. This is followed by 53% of Gen X, 36% of Gen Z, and 24% of Baby Boomers.
- Millennials are also the most likely to avoid medical care due to debt, with 62% indicating they do so. This compares to 57% of Gen X, 48% of Gen Z, and 24% of Baby Boomers.
The survey highlights several ways individuals manage their medical debt:
- 28% charged the debt to a credit card.
- 20% went further into debt with credit cards and personal loans.
- 14% withdrew all the money in their emergency fund.
- 11% withdrew money from their retirement account.
- 11% delayed seeing a doctor until they paid down more of their debt.
- 9% took on multiple jobs to pay off medical debt.
- 6% took out a HELOC on their home.
