Over 25% Of Americans Struggle with Medical Bills—Here’s What to Do

A recent Pew Research Center study has shed light on the harsh financial reality for millions of Americans: 27% say they’ve had trouble paying for medical care for themselves or their family in the past year.

This statistic highlights a growing crisis of affordability in the U.S. healthcare system and how deeply medical costs continue to affect everyday lives.

Despite the burden, however, there are steps that individuals can take to reduce or eliminate medical debt.

The Growing Financial Strain of Medical Care

The Pew Research Center study shows that managing medical bills is just one part of a larger financial struggle facing many Americans. Unlike student loans or mortgages, medical costs often strike without warning, whether it’s an emergency room visit (which can cost an average of $1,500 to $3,000 without insurance) or a sudden change in insurance coverage.

Alarmingly, high healthcare costs burden people across all income levels, including those with health insurance. High deductibles, co-pays, and surprise charges can lead even insured individuals to be unable to keep up.

The complexity of billing and insurance systems can make it difficult for patients to understand what they owe and why. Many Americans receive surprise bills or charges for care they didn’t realize they were receiving.

If you’re among millions facing medical debt, know that you’re not alone and that there are strategies to help you manage and reduce what you owe.

Review and Dispute Bills

Always request an itemized bill, and check it for errors. An incorrect medical bill is more common than you may think.

“Did you know that as many as 80% of medical bills have errors due to duplicate billing, incorrect coding, or charges for services not received?” said Joyce Rojas, financial advisor and founder of Money Mindset Wealth Management.

With mistakes being so common, don’t shy away from challenging a medical bill.

“Firstly, if a bill seems questionable, don’t pay it right away. Call the office first and ask as many questions as needed to understand if it’s correct. Many people feel embarrassed to ask or ‘feel dumb’ because they don’t understand the breakdown,” Rojas told Investopedia.

She recommends checking for these five common mistakes:

• Duplicate Charges: Make sure the same procedure or medication isn’t listed more than once.
• Incorrect Coding: Check if procedure codes match what was done—mistakes can inflate costs.
• Unreceived Services: Look for services you don’t recall receiving.
• Upcoding: This occurs they bill you for a more expensive service than the one actually performed.
• Insurance Misapplication: Check that your insurance was applied correctly and covered what it should have.

Negotiate Bills

Hospitals and doctors often have flexibility, especially if you’re uninsured or facing hardship. Inquire about potential discounts to lower your medical bills.

“If you see something incorrect or questionable on the medical bill, negotiate it,” Rojas said. She recommends negotiating bills for procedures that the provider did not inform you of before the services were rendered.

“For example, one of my clients received an unexpected bill from his orthodontist for a service that my client believed was still under a previous treatment he had already paid for,” said Rojas. “I advised him to negotiate that price down based on the fact that he was unaware that this was a new treatment… He took my advice, and the cost was removed altogether.”

Use Financial Assistance Programs

Financial assistance programs are available to those who fall within a certain income level, at both private and for-profit hospitals. This assistance is still an option even if the debt is in collections. In certain states, you also have access to charity care, which is free or discounted medical care.

Set Up a Payment Plan

If you’re not eligible for a financial assistance plan, some providers may offer payment plans that don’t charge any interest.

“If you need to choose between medical debt or credit card debt, remember that credit card debt typically has a higher percentage you’re being charged, while medical debt typically has lower interest, so pay more towards your credit cards to bring that payment down,” said Rojas.

Know Your Rights

Understanding your legal protections can empower you to fight unfair charges.

The No Surprises Act protects against surprise, out-of-network billing for emergency care. Additionally, the Fair Debt Collection Practices Act (FDCPA) limits how medical debt can be collected, and the Affordable Care Act (ACA) caps out-of-pocket costs and ensures greater transparency in healthcare pricing.

Prepare for Future Costs

Planning for medical costs and setting aside dedicated funds for healthcare costs can help ensure you’re better equipped to handle unexpected expenses.

“First and foremost, you need an emergency fund account with at least three months’ worth of expenses for unforeseen situations,” Rojas said.

Fortunately, there are dedicated savings tools that can help you prepare for medical costs more strategically.

Rojas suggests looking into health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs).

“If you have a high-deductible plan, consider a HSA—contributing to HSAs can help you save for future medical expenses while giving you a tax deduction, tax-free growth, and tax-free withdrawals for qualified medical expenses,” Rojas said.

The Bottom Line

Medical debt is a common problem, but it’s not impossible to overcome. By being proactive, reviewing your bills, negotiating costs, and exploring financial help, you can reduce the burden.