Medical Emergencies Leaving Long-Term Financial Impacts

Even those with health insurance in the U.S. can find themselves in tough financial situations after a medical emergency.

A recent study in a health journal revealed that 18 months post-hospitalization for traumatic injuries—like car accidents or falls— people faced increased collection rates for medical debts. Specifically, these rates climbed by 5.2 percentage points, which is about a 24% increase, compared to the period before the emergency. During the same timeframe, the average debt in collections rose by $290, with some patients owing over $4,480.

Moreover, the research indicated that about 15 months after an injury, bankruptcy filings increased by 3.2 for every 1,000 patients—an uptick of around 6%.

“I developed an interest in this study from my work as a trauma surgeon, where I often see injured patients worrying more about treatment costs than their recovery,” noted Dr. John Scott, an associate professor of surgery.

The study analyzed credit reports from nearly 13,000 trauma patients spanning from a year before their injuries to 18 months afterward. It’s worth noting that nearly all—98%—of these individuals had insurance.

“Insurance can help prevent financial disaster, but the current model leaves many exposed if a serious incident occurs,” Scott commented.

The findings come at a time when many Americans are struggling to afford healthcare. A nonpartisan research group recently reported that 66% of people are more anxious about their medical expenses than they are about basic needs like rent or groceries.

As lawmakers allow enhanced subsidies under the Affordable Care Act to expire at the end of 2025, a rise in uninsured individuals and those facing higher deductibles is anticipated.

Scott warned that the situation will likely worsen as more people are left either uninsured or underinsured.

Patients Facing Debt Before Insurance Kicks In

Despite the ACA making healthcare more accessible, many private insurance plans have hefty deductibles. For example, the average deductible for a silver plan in 2026 will be around $5,304, and about $7,186 for a bronze plan. This could mean that, unexpectedly injured individuals may need to pay significant amounts out of pocket before receiving any coverage.

“If you find yourself with an unforeseen injury, you could potentially incur thousands in expenses before insurance comes into play,” Scott remarked.

Caitlin Donovan, from the National Patient Advocacy Foundation, expressed concern that private insurance systems are failing to safeguard individuals from accruing debt and facing bankruptcy. She emphasized the necessity of implementing additional protections in insurance policies, such as limiting deductibles and creating income-based thresholds for out-of-pocket costs.

Interestingly, the study outlined differing outcomes for trauma patients on Medicare and Medicaid, who showed little change in medical debt or bankruptcy rates. This may be due to capped spending under Medicare and minimal out-of-pocket requirements for Medicaid recipients.

“If the goal of insurance is to protect against financial difficulties post-health crisis, Medicaid has been effective,” Scott concluded. “For a lot of people, private insurance hasn’t fulfilled that promise.”