A recent Gallup poll revealed a staggering reality: Americans borrowed an estimated $74 billion in 2024 to cover medical bills. The poll further estimates that 12% of American adults—equivalent to 31 million people—had to take on debt just to afford necessary medical care.
Even more concerning, 58% of those who borrowed needed more than $500 to cover their expenses. The same percentage of respondents expressed fears that a major medical event would drive them deeper into financial hardship.
A Healthcare System Moving in the Wrong Direction
Despite the growing financial strain on patients, healthcare costs continue to rise. Deductibles and insurance premiums are increasing while the amount insurance companies cover is decreasing. Additional barriers, such as shrinking provider networks and increasing prior authorization requirements, make access to care even more difficult.
This is a system that is failing the people it is supposed to serve. Many Americans now opt to skip necessary medical services due to cost concerns, leading to worsening health outcomes and, ultimately, higher long-term costs for both individuals and the healthcare system as a whole.
How Can We Improve Healthcare Access and Affordability?
There is no single solution to the crisis of medical debt and access to care. However, multiple steps can be taken to alleviate the burden on patients and providers alike:
Supporting Legislative Action: Policies like H.R. 879, the Medicare Patient Access and Practice Stabilization Act, aim to improve reimbursement rates and stabilize access to care.
Expanding Direct-to-Employer Contracts: This model allows businesses to contract directly with healthcare providers, bypassing traditional insurance barriers and reducing costs.
Reevaluating Insurance Contracts: Medical providers must assess whether poor reimbursement contracts are sustainable or whether alternative models, such as direct pay offerings, can provide better care at lower costs.
Reducing Administrative Burdens: The increasing complexity of billing and insurance requirements places undue strain on medical providers, often leading to higher patient costs and restricted access to care.
A Combination of Small and Large Wins Can Reduce Medical Debt
Addressing America’s healthcare affordability crisis requires both immediate and long-term action. Some solutions will take time—such as overhauling insurance models and pushing for legislative change—while others can be implemented more quickly, like expanding direct pay options and streamlining administrative processes.
Every step toward affordability and accessibility matters. By pushing for systemic changes while also implementing practical solutions now, we can create a healthcare system that better serves both patients and providers.
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