Could Kamala Harris's plan to erase Americans’ $220B of medical debt be the solution for US health care crisis? Here's how to prepare for unexpected expenses in 2025

It’s a lofty goal, considering nearly 1-in-12 adults (8%) owe medical debt totaling at least $220 billion as of December 2021, according to a 2024 Peterson-KFF analysis of U.S. Census Bureau data.

Finding the money to pay off medical debt, including dental bills, is like pulling teeth for consumers. KFF research shows that 6-in-10 medical debtors cut spending on food, clothing, and essential household items, while 4-in-10 took on another job or worked extra hours.

Here are a few ways help you avoid — or even climb out of — medical debt no matter who wins the White House next week.

The crisis close up

The Peterson-KFF analysis also showed that at least 14 million people owe $1,000 or more in medical debt, while about 3 million people owe more than $10,000.

Getting affordable insurance can help you mitigate medical debt. While the American Rescue Plan Act lowered overall insurance costs by offering tax credits since 2021 — it is set to expire in 2025.

“Nearly all marketplace enrollees will face significantly higher premium costs and 3.8 million will become uninsured, according to Congressional Budget Office estimates,” said Gideon Lukens, senior fellow and director of research and data analysis for the Center on Budget and Policy Priorities.

Shopping around for insurance that caters to your needs and your budget is now more important than ever. If you are under 65, you can shop around for insurance policies that provide desired coverage, including that for pre-existing medical conditions through U65 Health Insurance.

All you have to do is enter your zip code, age, and household income, and U65 Health Insurance will present you with a range of affordable healthcare options.

You can browse through the insurance policies offered by major insurers like United Health, Aetna and Kaiser. to find one that is best suited for your needs — and it’s completely free.

Save for emergency medical expenses

In a recent interview with talk show host Sherri Shepherd, Harris said that “no one asked for that health emergency to happen, it’s not a sign of irresponsibility.” You can’t avoid medical emergencies, but you shouldn’t go into debt just to pay off your medical bills.

If elected to the office, Harris’ plans can reduce your medical debt substantially. She proposes to eliminate roughly $7 billion in medical debt for nearly 3 million people by the end of 2026. But you might still be vulnerable in the event of future emergencies. It’s better to be safe than sorry, putting money aside to save for medical emergencies is crucial if you don’t want to go into medical debt.

Building an emergency fund can help you ease the burden of potential bills in case you get hurt. This way you can focus on your health and recuperate peacefully rather than worry about the emergency room invoice.

CDs (certificates of deposit) are a type of savings account that pay a fixed interest rate on cash you save for a set period of time, so you have the chance to earn high interest on your savings.

With CD Valet — an online CD marketplace — you can shop and compare top certificate of deposit rates from various banks and credit unions nationwide. CD Valet’s extensive database shows you the most competitive rates without bias, daily rate updates, and earnings calculators which give consumers an array of free tools to help them find the right CD to meet your savings goals.

Keep in mind that money invested in CDs is locked in — meaning you have to pay a penalty if you decide to withdraw early.

Instead, if you are looking to invest in more liquid options, try investing in a high-yield savings account offered by Public.com.

Public.com offers an industry-leading 4.6% APY on its no-fee cash account. You also don’t need to maintain any minimum balance on the high-yield cash account.

If you want to take on a little more risk, you can try Public.com’s zero-commission, self-directed brokerage account. You can choose to build your portfolio as you like and choose from a basket of assets such as stocks, bonds, ETFs, and alternative assets.