Yes it does. But how to people manage that don't make these IT job salaries? How do "regular" Americans survive such an event?

Bankruptcy, or they die from not being able to afford care beyond the stabilization emergency rooms are obligated to give (and bill extremely high for) even without insurance or ability to pay. Plenty of people can't afford chemo, for example, and just die.

Think you already know the answer to this… :-)

They don't, or they go bankrupt.