US Healthcare Crisis: Patients Face Mounting Debt and Uncertainty

A shocking incident has underscored the ongoing crisis in the US healthcare system. Jeff King, a 66-year-old resident of Lawrence, Kansas, found himself facing a staggering bill of $160,000 for a procedure to correct his irregular heart rhythm. This unexpected expense arose after King underwent treatment without standard health insurance coverage, relying instead on a cost-sharing alternative plan that refused to cover the procedure. “It was pretty traumatic,” King remarked, highlighting the financial strain such medical debts can impose on individuals.

As of recent estimates, around 100 million Americans, or nearly 40% of the population, struggle with medical and dental debt. The issue is exacerbated by the United States having one of the most expensive healthcare systems globally, with projections indicating that spending could reach $5.9 trillion by 2026, according to the Centers for Medicare and Medicaid Services. Despite this high expenditure, the country lags behind other wealthy nations in terms of life expectancy, as reported by the health research nonprofit KFF.

Public dissatisfaction with the healthcare system has intensified over the years. In a tragic incident in December 2024, a gunman fatally shot UnitedHealthcare CEO Brian Thompson in Manhattan, leading some individuals on social media to portray the shooter, Luigi Mangione, as a folk hero. Supporters gathered outside the courthouse, wearing apparel that read “Free Luigi” and protesting against the healthcare industry. Following a recent hearing, a judge dismissed a federal firearms murder count against Mangione, which could have led to the death penalty.

Political discourse surrounding healthcare reform has persisted, with both Republican and Democratic leaders acknowledging the need for change. Recently, former President Donald Trump put forth the “Great Healthcare Plan,” which aims to provide direct financial assistance to citizens for health insurance. The proposal also includes a commitment to eliminate “kickbacks” to middlemen. However, critics argue that the plan lacks substantial details, such as the proposed funding mechanism and the amount of money citizens would receive.

Over the past two decades, large publicly traded health companies have seen their profits triple, disbursing over $2.6 trillion to shareholders from 2001 to 2022, according to a study published in the Journal of the American Medical Association. John McDonough, a professor at the Harvard T.H. Chan School of Public Health, commented on the situation, stating, “We are the only major [health] system in the world that allows the free market to run loose.” He emphasized the need for political will to implement necessary reforms.

Despite widespread recognition of the system’s flaws, a majority of Americans prefer the existing private healthcare model over a government-run alternative. A recent Gallup survey revealed that 53% of respondents favor a private system. The critical question remains: is there sufficient political will to address the healthcare challenges that many citizens face?

The US does not guarantee health coverage for its citizens, relying instead on a predominantly private insurance system supplemented by government-funded programs. Although the Affordable Care Act (ACA), enacted by President Barack Obama in 2010, aimed to expand healthcare access, many Americans still grapple with affordability. A decade after its implementation, about one in five individuals with private health insurance reported that their providers denied coverage for doctor-recommended treatments, according to KFF.

In the aftermath of Thompson’s shooting, some health companies pledged to streamline the claims approval process. Nonetheless, countless Americans remain unable to afford health insurance. For instance, Stacy Cox, a small business owner in Utah, faced a quadrupling of her health insurance premium, rising from $500 to $2,100 monthly, as Covid-related subsidies ended in 2023. In response, Cox and her husband opted for an emergency-only plan, leaving her anxious about her health risks.

Leighton Ku, a health policy professor at George Washington University’s Milken Institute School of Public Health, noted that approximately four million people may lose insurance coverage in the coming years due to the expiration of Covid subsidies. Furthermore, healthcare costs are projected to increase by an average of 114%, or around $1,000 annually, for those affected by subsidy cuts.

The complexity of the US healthcare system, which features multiple overlapping programs such as Medicare, Medicaid, and employer-sponsored insurance, complicates the situation further. McDonough stated, “We have so many, each of them with their own set of rules, their own system, their own bureaucracy.” He advocates for system consolidation to improve efficiency.

Smaller solutions could alleviate some financial burdens. For example, the White House could negotiate lower prices for medications provided under government insurance programs. Jonathan Zhang, an assistant professor at Duke University’s Sanford School of Public Policy, highlighted the importance of regulating competition within the healthcare industry to help reduce costs.

Despite bipartisan recognition of the problem, finding a consensus on solutions has proven elusive. In the absence of federal action, some state governments have stepped in to assist, banning medical debt from appearing on credit reports to facilitate access to loans and offering separate subsidies for insurance costs.

Individuals like Mike Short, a self-employed graphic artist in Tennessee, exemplify the real-world impact of healthcare costs. After incurring substantial medical debt from a Covid-related hospital stay, Short now faces ongoing health concerns without insurance. He expressed the anxiety of living without coverage, stating, “I’m trying to keep myself fairly healthy, but things sometimes get out of your control. It’s a constant worry.”

As the political landscape evolves, Republican lawmakers have begun to recognize the urgency of addressing healthcare costs. Last month, the Republican-controlled House of Representatives passed a bill to renew ACA subsidies, which is currently under discussion in the Senate. McDonough noted, “There is a recognition that [Republicans] have to do something, because they are feeling particularly vulnerable on this issue.”

The struggles caused by medical debt are evident in the work of Eva Stahl, who leads a nonprofit organization that pays off medical debt. Her organization, Undue Medical Debt, has alleviated around $25 billion in medical debt for nearly 15 million people in the past decade. Stahl highlighted the ongoing stress caused by medical debt, which can lead individuals to avoid necessary care, ultimately worsening their health outcomes.

Jeff King, who faced a $160,000 bill, managed to negotiate the amount down to $90,000 after extensive research and discussions with the hospital. Despite the relief of eventually settling the debt, he reflected on the overwhelming complexity of the healthcare system, stating, “Our health system is super confusing. It’s way more complicated than I think that it needs to be.”

Ultimately, as King paid off the remaining balance through crowdfunding efforts, he voiced a sentiment shared by many Americans: “Most bankruptcies are caused by medical bills. It wrecks people’s lives at no fault of their own.” As the US grapples with its healthcare crisis, the question remains whether meaningful reform will materialize or if the cycle of financial hardship will persist for millions.