29% of Insured Americans Delayed or Avoided Medical Care in Past Year Due to Costs

Paying for health care can feel overwhelming, even for families with medical insurance. Premiums, deductibles and out-of-pocket costs continue to rise, and many households struggle to keep up.

A ValuePenguin survey reveals that a substantial share of insured Americans take on debt to pay for medical expenses, including nearly half of parents with children younger than 18. Others consider alternative options such as borrowing money from friends or family or exploring care outside the U.S. Rising costs also push some Americans to reconsider their insurance coverage or delay or forgo medical care altogether.

The findings below highlight how financial pressure is shaping health care decisions nationwide.

Key findings

Insured Americans take on debt for medical care

Most survey respondents (90%) report that they currently have health insurance. Employer-sponsored plans and government programs such as Medicare and Medicaid are the most common sources of coverage.

Among survey respondents, coverage sources break down as follows:

These results highlight how employer coverage and federal health programs continue to play a central role in Americans’ access to health insurance.

Insurance coverage rates also vary across demographics. Younger adults are more likely than older groups to lack coverage. Nearly one-fifth (19%) of Gen Z respondents ages 18 to 29 report having no health insurance, the highest rate among the generations. Millennials ages 30 to 45 follow at 14%, suggesting younger workers may face greater challenges obtaining consistent coverage than older Americans.

Even with coverage, many insured Americans still struggle to afford medical care. The survey shows that 32% of insured Americans say they’ve taken on debt to pay for medical expenses, including 47% of insured respondents with children younger than 18. This suggests that health insurance doesn’t always protect families from significant medical costs.

Alternative ways to pay for medical care

Some Americans also consider alternative ways to afford medical care as health insurance costs rise. Borrowing money from friends or family (16%) is the most commonly cited option. Additionally, 11% say they’ve considered using travel health insurance, and 10% say they’ve considered moving to a country with more affordable health care.

In some cases, people also turn to fundraising to help with medical bills. Another ValuePenguin study found that many Americans have turned to online crowdfunding campaigns to help cover health care costs when insurance and savings fall short.

Many considering dropping coverage entirely

Despite widespread coverage, many insured Americans say rising costs have made them consider whether maintaining health care coverage makes financial sense. More than one-third of insured Americans (34%) say they’ve considered dropping their health insurance entirely.

Younger adults show the greatest level of concern about maintaining coverage. Two-thirds of Gen Z respondents (66%) say they have thought about dropping their health insurance — a significantly higher share than older generations.

Cost pressures appear to drive many of these concerns. Among insured Gen Z respondents, the most common reasons they've considered dropping health insurance include:

Some Americans have already made the decision to give up or cut back on health insurance coverage at least once. Fifteen percent of currently insured respondents say they previously dropped coverage, another 13% have cut back, and another 6% have done both. The share who’ve cut back or dropped coverage (or both) rises sharply from 33% overall to 64% among Gen Z respondents and 54% among parents of young kids.

Potential impacts of dropping health insurance

Dropping coverage might seem like a quick way to lower monthly expenses, but the decision can create serious financial risks.

Cate Deventer, a ValuePenguin senior writer and licensed health insurance agent, warns that going without coverage could leave consumers exposed to extremely high medical bills.

"Dropping your health insurance might seem like a good idea to save money, but it can cost you more in the long run," Deventer says. "Without health insurance, you’ll have to pay the full cost of medical care, including urgent and emergency treatment."

Unexpected medical events can lead to significant bills. An urgent care visit costs between $120 and $184, on average. Meanwhile, the average cost of an emergency room visit is $1,700, according to UnitedHealthcare. As a result, even a single emergency visit could create significant financial strain for uninsured households.

Some delay or avoid medical care due to costs

Rising health care costs don’t just affect household budgets. They also influence whether people seek care in the first place. The survey finds that 29% of insured Americans say they’ve delayed or avoided medical care in the past year because of cost concerns.

Younger adults and parents of young kids report even higher rates of delaying or avoiding care. More than 2 in 5 (43%) of those with children younger than 18 and 41% of Gen Zers say they delayed or avoided medical care in the past year due to cost. These findings suggest that financial pressure can influence medical decisions even among people who already have health insurance.

Cost concerns also affect how some Americans manage their prescriptions. One-quarter of insured respondents (25%) say they have cut pills, skipped doses or chosen not to fill a prescription to save money. Stretching medications in this way can increase health risks and may lead to more expensive treatment later.

Parents often face particularly difficult trade-offs when medical costs rise. About one-third (34%) of insured Americans with children — regardless of age — say they’ve skipped their own medical care to afford medical care for their children. The share climbs even higher among younger parents, with 57% of Gen Z parents and 50% of millennial parents reporting that they have skipped their own care so their children could receive treatment.

Deventer says delaying care can sometimes create larger financial and health problems later.

"If people delay or avoid medical care and get sicker as a result, it’s possible they’ll have to pay more overall," Deventer says. "If you have the flu, for example, but don’t get care promptly, you may be more likely to need more intensive care, which can lead to even higher bills, especially without insurance."

Skipping routine visits can also increase the risk that doctors will miss medical issues in their early stages. Preventive care and timely treatment can help patients manage conditions before they become more serious and expensive to treat.

Nearly half with insurance make financial sacrifices to afford it

Coverage helps protect households from large medical bills, but many Americans still worry about health insurance prices and make difficult trade-offs to pay their premiums. The survey finds that 47% of insured Americans say they’ve had to make financial sacrifices to maintain their health insurance coverage.

Those sacrifices often affect everyday spending decisions. The most common trade-offs respondents report include:

These findings highlight how health insurance costs can ripple through household budgets, forcing families to shift spending priorities to maintain coverage.

Financial trade-offs tied to health insurance can also influence major life decisions. One in 5 (20%) insured Americans say they’ve changed jobs, delayed retirement or remained in a job primarily for the health insurance benefits. Employer-sponsored plans remain one of the most common ways Americans obtain coverage, which can make health insurance a key factor in career choices.

Despite sacrifices, most insured Americans believe insurance is worth it

Despite the cost, the majority of insured Americans (80%) say their health care expenses are generally affordable. Meanwhile, 77% of insured respondents say their health insurance provides good value for the cost. This suggests that although premiums and out-of-pocket costs strain many budgets, most insured Americans still see health insurance as an important financial safeguard.

Some insured Americans also pay little or nothing for their monthly premiums. Nearly 1 in 4 (24%) insured respondents say they pay nothing each month for their health insurance, often because an employer or government program covers the cost. Other survey respondents report paying the following monthly amounts:

Together, these findings show that Americans often view health insurance as worth the cost, even when maintaining coverage requires meaningful financial adjustments.

5 tips for managing health insurance costs

Health insurance costs can strain many household budgets, but several strategies may help households manage expenses without sacrificing important coverage. A key first step is reviewing coverage options carefully and choosing a plan that fits both your health needs and your budget.

These strategies can help consumers control health insurance costs while still maintaining protection against large, unexpected medical bills.