If you think your health insurance protects you from medical debt, a new study in Utah has sobering news: 60% of residents — most of whom have insurance — can’t pay a $1,000 medical bill without borrowing money.
The One Utah Health Collaborative surveyed 1,000 Utahns in 2025 and the findings show a health care system failing, even those who play by the rules. Despite 60% having employer or private insurance, people are skipping medications, avoiding doctors and depleting savings just to stay afloat.
The numbers don’t lie
22%Borrowed money for medical expenses
33%Skipped or postponed care
According to Scott Barlow, executive director of the One Utah Health Collaborative: “A single surprise medical bill is enough to push most Utahns over a financial cliff.”
What the survey found
People are rationing care
- 33% skipped or postponed a medical visit due to cost concerns
- 22% skipped recommended medical tests or treatments
- 21% skipped prescriptions or took fewer than prescribed doses
Read that last one again. That is one in five people not taking their medications as prescribed because they can’t afford it. That’s not a budgeting problem, that’s a health care system problem.
Insurance is not enough
Even though you are insured:
- 61% pay entirely out of pocket for prescriptions, behavioral health, dental or vision care
- Even if we ignore the dental and visual aspects, 46% still pay for at least one healthcare expense themselves
- Employee premiums have increased by 21% in just four years
Savings are wiped out
- 18% used significant savings to cover medical costs
- 10% had to forego basic needs (food, utilities, housing) due to medical bills
Why this matters outside of Utah
Although this study focused on Utah, these patterns reflect national data. According to the Peterson-KFF Health System Tracker:
- Americans have at least $220 billion in medical debt
- 41% of American adults (107 million people) have some form of medical debt
- 24% of adults have medical debt that is overdue or that they cannot pay
The trust problem
Perhaps most telling: only 6 in 10 Utahns rely on the health care system– and those who use it rely on it more fewer.
People trust their doctors. They don’t trust insurers and hospitals. That’s not paranoia, but pattern recognition from people who have seen their bills.
What you can do
Medical debt is different from other debt. Here’s what you need to know:
✓ Medical debt options
- Negotiate directly with providers (often significant discounts available)
- Ask about financial hardship programs
- Set up payment plans (often 0% interest)
- Check if you qualify for charity care
- Medical debt no longer appears on credit reports under $500
- Bankruptcy can eliminate medical debt completely
✗ What NOT to do
- Put medical bills on credit cards (trade 0% for 22%+)
- Paying out pensions to pay medical debts
- Ignore the bills hoping they go away
- Pay before checking for billing errors (common)
When medical debt becomes unmanageable
If you’re dealing with medical debt you can’t pay, you’re not alone and you don’t have any options. Mathematics often favors a fresh start over years of struggle.
Not sure which option suits your situation? Take my Find Your Path quiz for personalized guidance based on your specific circumstances.
Key Takeaways
- 60% of Utahns can’t handle a $1,000 medical bill without debt, even with insurance
- A third skip or postpone care because of the costs
- Insurance premiums have risen by 21% in four years, while coverage offers less protection
- Medical debts are different: first negotiate, possibly consider bankruptcy
- Never sacrifice your retirement to pay medical bills
Debt is the symptom, not the problem. When the healthcare system itself is broken, individual budgeting can only do so much.–Steve Rhode
… (Source: Desert News) | (Utah business)
Frequently asked questions
What percentage of Americans cannot afford a $1,000 medical emergency?
According to the Utah study, 60% of residents cannot pay a thousand dollar medical bill without going into debt. National surveys show similar numbers, with Bankrate finding that 59% of Americans cannot cover a single $1,000 emergency expense.
Does health insurance protect you against medical debt?
Not necessarily. The Utah survey found that 60% of residents have employer or private insurance, but 61% still pay entirely out of pocket for prescriptions, behavioral health, dental or vision care. High deductibles and coverage differences leave many “covered but not shielded.”
What happens if I can’t pay my medical bills?
You have options: negotiate directly with providers for discounts, ask about financial hardship programs, set up a 0% payment plan, check your eligibility for charity care, or consider bankruptcy if debts are unmanageable. Medical debts of less than $500 no longer appear on credit reports.
Should I Use a Credit Card to Pay Medical Debt?
Generally no. Medical providers often offer 0% payment plans, while credit cards charge 20%+ interest. Using credit cards to pay medical bills swaps manageable debt for high-interest debt. Consult with the provider first.
Can medical debts be discharged in bankruptcy?
Yes. Medical debt is unsecured debt that can be completely eliminated in bankruptcy. If medical bills have become unmanageable, bankruptcy can provide a faster path to financial recovery than struggling with payments for years.
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