Insured Americans Struggle with Medical Debt, Survey Finds

Nearly one-third of adults aged 19-64 with private health insurance are dealing with unpaid medical bills or medical debt, according to a recent survey by the Commonwealth Fund. The foundation's report, released September 17, indicates that this financial burden is not limited to those without coverage.

Among insured adults with medical debt, nearly half owe $2,000 or more. The issues often arise from routine care, including doctor's office visits and treatment for chronic conditions, as well as high deductibles. Many individuals expressed surprise at the size of their medical bills despite having insurance, the study noted.

The problem could be exacerbated in the coming years as health insurance becomes less affordable. The cost of employer-sponsored health benefits is projected to increase by 8.2% in 2027, the highest rise since 2003, according to a survey by Marsh. Some employers are considering downgrading plans and shifting more costs to employees. Furthermore, a decision not to renew subsidies for Affordable Care Act Exchange plans has led many consumers to choose lower-quality plans that may result in higher out-of-pocket expenses for significant health issues.

The Commonwealth Fund study also revealed that 30% of insured respondents cut back on basic necessities like food, heat, or rent to afford healthcare, and 37% of those with debt used their savings to cover bills. This medical debt can lead to a reluctance to seek further medical care, potentially resulting in the need for more expensive emergency services instead of preventative treatments.

Fear of damaged credit scores due to medical debt is a significant concern for many Americans. While fifteen states have enacted laws to limit the use of medical debt in lending decisions and on credit reports, a federal rule finalized by the Consumer Financial Protection Bureau to keep medical debt off credit reports was vacated in July 2025.