- Half of all U.S. adults are concerned that a major health event in their household could lead to bankruptcy, an increase from 45% measured in early 2019 (PDF download). These results, based on a new study by West Health and Gallup, also show that the percentage of non-White adults who harbor this concern has risen from 52% to 64%.

This study is based on 1,007 interviews with U.S. adults conducted from July 1-24, 2020. Over the past year, concerns about medical bankruptcy have increased 12 and nine percentage points, respectively, among adults aged 18-29 and 30-49. Fifty-five percent of both groups now report being extremely concerned or concerned that a major health event could bankrupt them. Men's concern is up seven points to 49% and is now statistically tied with concern among women (51%).

One-Fifth of Non-White Adults Carry Long-Term Medical Debt

Amid rising concerns nationally about bankruptcy arising from a significant health event, 15% of adults report that at least one person in their household currently has medical debt that will not be repaid -- either in full or in part -- within the next 12 months. This includes 12% of White adults and 20% of non-White adults.

Those in households earning less than $40,000 per year are more than four times as likely as those in households earning $100,000 or more to be carrying long-term medical debt (28% vs. 6%, respectively). The rate is also about twice as high among self-identified political independents (18%) and Democrats (16%) as among Republicans (8%).

One-Quarter of U.S. Adults Must Borrow Money for $500 Medical Bill

With substantial percentages of adults reporting that they currently have medical debt that they cannot pay in a year or less, it is probably unsurprising that 26% report they would need to borrow money to pay a $500 medical bill. To do this, 12% say they would use a credit card or get a loan from a financial institution, while another 14% would borrow from a family member or friend. For some persons, these forms of borrowing could ordinarily be characterized by prompt repayment (such as simply paying off the credit card at the end of the month), but for many others, it is likely to feed into a cycle of accumulating medical debt that cannot be readily repaid.

The need to borrow money to pay a $500 medical bill is particularly common among non-White adults (43%) and those living in households earning less than $40,000 per year (46%).

There is A Better Way To Fight The High Cost of Health Care