The Problem with Medical Debt

Medical debt is not just unfortunate—it’s unjust and uniquely American. This crisis is driven by institutional and systemic issues on a national scale.

Impact

Who is Affected

$220B+

owed nationwide in medical debt for over 100 million U.S. adults.

Why Medical Debt Happens

Medical debt typically results from unexpected illnesses and accidents.

Our Solution

We support creating a transparent, equitable and affordable healthcare system with comprehensive insurance and accessible financial aid, where no one delays or avoids care because they fear incurring debt.

Unexpected emergencies drain finances

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Medical debt is the leading cause of bankruptcy in the U.S. About one-third of adults have difficulty covering unexpected expenses. Half don’t have $500 for an emergency.

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A complex healthcare financing system

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Patients are often stuck between providers and insurers. People of color are even more likely to face barriers to care and to hold medical debt.

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Expensive high-deductible insurance

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Medical debt has grown with the increasing cost of healthcare and the prevalence of high-deductible insurance. 6 in 10 uninsured and 1 in 5 insured adults report not getting necessary care due to cost.

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The Impact of Medical Debt

55%

deferred medical care as a result of medical debt — a finding from our research with Neighborhood Trust.

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Those with debt are 3 times more likely to struggle with depression and/or anxiety

7 in 10

of U.S. adults say they receive medical bills they cannot afford.

“It’s extremely stressful to try and juggle bills from month to month.”

— Morgan

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“The past-due medical debt we have is due to multiple hospital stays, tests, and surgery for family members. I have tried setting up payment plans which have been denied by the hospital as “not being good enough (amount-wise).” I try to pay what I can without it affecting my family’s wellbeing.

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“I’ve postponed follow up care due to costs for prescription copays and the clinic visit.

— Dennis

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“I was very fortunate that my last Emergency Department visit qualified for charity. I only owe $39 for x-rays and the EKG. However I’m also hoping in the near future to find affordable health coverage so I can receive better quality care.”

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Who is the most affected?

Medical debt impacts over 100 million people in the U.S., but not equally.

The stories we share, and debts we erase, highlight and reckon with the racial injustice built into the healthcare system.

Nearly 1/2 of U.S. adults struggle to afford healthcare costs.

For Black, Hispanic and low-income adults that figure jumps to at least six in ten.

People of color are disproportionately impacted by medical debt.

Polling reveals that Black adults are 50% more likely and Hispanic adults are 35% more likely to have medical debt compared to white adults.

Learn More About Our Work

Our Policy Goals

Learn how we work to inform and deepen policy conversations around medical debt, affordable and comprehensive health coverage and the ending of extraordinary collection actions.

Learn More

Stories from Medical Debt Recipients

We’re changing the way people think about medical debt by sharing stories that reveal it is a failure of policies and systems, not people.