Updated April 24, 2026 at 2:05 PM ET
While most Americans have health insurance, there’s still a pervasive worry about how a medical emergency could lead to a financial crisis, recent research reveals.
In a survey conducted in February involving 1,507 participants by JG Wentworth, it was found that nearly 97% claimed to have health insurance. Yet, an overwhelming 94.7% of those insured expressed concerns about hospital bills. Interestingly, the average medical expense of $4,354 seems to be a tipping point for many. In fact, seven out of ten people indicated they would struggle to manage necessary expenses if faced with unexpected medical costs below $10,000.
For context, the average cost for a one-night hospital stay in 2024 is reported to be $3,297, based on data from KFF, a nonprofit health policy organization. The typical stay lasts about 5.8 days, as mentioned in their 2023 report.
Medical debt has become a major issue, with KFF estimating the total burden of such debt across the U.S. to be around $220 billion. According to the JG Wentworth survey, a significant 85.1% of respondents were already dealing with medical debt, and 81.3% stated they owed between $1,000 and $10,000.
A spokesperson from JG Wentworth noted, “Health insurance is designed to lower health care costs, but it doesn’t completely eliminate them.” They emphasized that even well-insured individuals might encounter deductibles that reach into the thousands, along with surprising out-of-network fees from certain providers. While insurance can cushion the financial blow from serious medical emergencies, it can’t prevent hefty bills from routine procedures.
Insurance Gap
According to a study by the Commonwealth Fund, which looks into healthcare issues, nearly one in four Americans—about 23%—are considered underinsured. This situation means that despite having insurance, they still face high out-of-pocket expenses that they can’t afford.
JG Wentworth’s findings echo this uncertainty. Only 12.4% of insured participants felt very confident that their coverage would protect them from financial hardship due to a serious medical condition. Moreover, 92% admitted to postponing or skipping medical care because of cost concerns.
Data indicates that among those with long-term health issues, nearly one in three (31.8%) reported worsening symptoms due to the inability to afford medication. Alarmingly, almost 96% confessed to having to choose between purchasing medication and essential needs like food.
How Long Will Medical Debt Last?
When asked about their ability to settle medical debt, only 6.7% of survey participants felt they could pay it off within a year. The majority, about 90%, believed it would take between one to three years to clear their debts, while a small fraction (2.9%) anticipated it would take over three years, and 0.9% didn’t expect to repay it at all. Medical expenses are notably a leading cause of bankruptcy filings, with nearly 67% of cases attributed annually to such costs.
How Can People Manage Medical Debt?
Experts suggest that careful planning is vital for managing healthcare costs.
A spokesperson from JG Wentworth advised, “Understand your out-of-pocket costs, limits, and coinsurance rates before you need them.” They recommend confirming that all healthcare providers are in-network before undergoing elective procedures. For those with high-deductible plans, contributing to a Health Savings Account (HSA) might be a beneficial strategy, as these accounts allow tax-free contributions and balances that roll over indefinitely. It’s wise to have savings available to cover at least half of the out-of-pocket maximum.
HSAs gained momentum last year after President Trump signed a tax and spending bill making them more accessible to millions of Americans. Financial advisors often recommend HSA plans due to their tax advantages for contributions, growth, and withdrawals used for qualifying expenses.
Another piece of advice is to scrutinize medical statements for any billing errors or excessive charges, as such mistakes occur more frequently than one might expect.
Even former U.S. Surgeon General Jerome Adams experienced this firsthand when he shared a bill for nearly $5,000 after insurance coverage — a situation he found astonishing and subsequently objected to.
While examining and disputing medical bills can be painstaking, companies like good billing and others aim to help reduce those bills by taking a portion of the savings they create.
Finally, before settling any bills, it’s worth exploring financial aid options that many hospitals provide, though these assistance programs aren’t always widely publicized.
