Medical Debt Statistics US: Key Facts, Trends & Impact!

Medical debt is one of the most persistent forms of financial stress in the United States. Unlike many other types of debt, medical bills can arise unexpectedly after an illness, emergency, surgery, or other necessary treatment. Even people with health insurance can face deductibles, coinsurance, copayments, and uncovered expenses that become difficult to pay.

The latest medical debt statistics US data shows that the problem affects millions of Americans and can extend beyond unpaid hospital bills. Medical debt can contribute to collection activity, financial hardship, and problems accessing future credit.

This article breaks down the latest available U.S. statistics, who is most affected, how medical debt appears on credit reports, and what consumers should know when dealing with unpaid medical bills.

Medical Debt Statistics US: Key Numbers

Several major studies illustrate the scale of medical debt in America.

According to KFF's analysis of government data, people in the United States owe at least $220 billion in medical debt. About 14 million adults, or 6% of U.S. adults, owe more than $1,000, while roughly 3 million adults, or 1%, owe more than $10,000 in medical debt.

These numbers come from different datasets and years, so they should not be added together. Together, however, they show how widespread medical-related financial pressure remains.

How Common Is Medical Debt in the US?

Medical debt is more widespread than a simple count of unpaid hospital bills suggests.

KFF's Health Care Debt Survey found that 41% of U.S. adults had some form of health care debt. This included unpaid or past-due bills, bills being paid directly to providers, debt from loans used for medical expenses, medical bills placed on credit cards, and money borrowed from family or friends.

Another KFF analysis found that 23% of U.S. adults had one or more unpaid and past-due bills from a medical service provider in 2021.

This distinction matters because medical debt isn't always recorded as "medical debt." A person may use a credit card or personal loan to pay a hospital bill, turning a health care expense into another type of consumer debt.

Which States Have the Most Medical Debt?

Medical debt varies considerably across the United States.

KFF's analysis found that the percentage of adults with medical debt was highest in several Southern states. South Dakota had 17.7% of adults with medical debt, followed by Mississippi at 15.2%, North Carolina at 13.4%, West Virginia at 13.3%, and Georgia at 12.7%.

By comparison, Hawaii had the lowest reported share at 2.3%, while Washington, D.C. was at 2.7%.

These differences can reflect variations in income, insurance coverage, health care costs, and other economic conditions.

Medical Debt and Financial Hardship

Medical debt rarely exists in isolation.

KFF found that people with medical debt are more likely to experience other signs of financial vulnerability, including having no emergency savings, overdrawing checking accounts, or relying on costly forms of borrowing.

That creates a difficult cycle. A household may use credit to cover medical bills, then struggle to make credit card payments or other monthly obligations. In severe cases, one unexpected medical event can affect a family's entire financial situation.

If you're already struggling with medical bills, understanding your rights is important. The Consumer Financial Protection Bureau's medical debt resources provide information about medical billing, collections, and consumer protections.

Medical Debt and Credit Reports

Medical debt has also been an important issue in the U.S. credit reporting system.

In April 2024, the CFPB reported that 15 million Americans had medical bills on their credit reports, representing more than $49 billion in outstanding medical bills in collections.

However, medical collections on credit reports have declined substantially following changes by the three major nationwide credit reporting companies.

CFPB research found that the share of consumers with medical collections on their credit records fell from approximately 14% in March 2022 to around 5% in June 2023.

If you're dealing with an old medical collection, our article on how medical debt can be removed from a credit report explains factors that may affect credit reporting and what consumers can check.

How Long Can Medical Debt Be Collected?

The time limit for collecting medical debt varies by state. State statutes of limitations can determine how long a creditor may have to file a lawsuit over an unpaid debt, but the rules differ depending on the type of agreement and other circumstances.

That means consumers shouldn't assume that an old medical bill automatically disappears after a specific number of years.

For a state-by-state explanation, read our medical debt statute of limitations resource before making assumptions about an older account.

Who Is Most Vulnerable to Medical Debt?

Medical debt can affect people across income levels, but some groups face higher risks.

KFF research shows that health care debt is particularly common among lower-income households, uninsured adults, women, Black and Hispanic adults, and parents.

Medical debt also affects people with insurance. Having coverage doesn't necessarily eliminate deductibles, coinsurance, copayments, or other out-of-pocket expenses.

Unexpected costs are another major factor. KFF found that 74% of adults were worried about being able to afford unexpected medical bills, while 73% were worried about the cost of health care services.

What Can Consumers Do About Medical Debt?

If a medical bill is unaffordable, don't immediately assume you have to pay the full amount.

Consider these steps:

• Review the bill carefully for errors or duplicate charges.
• Check your insurance explanation of benefits against the provider's bill.
• Ask the provider about financial assistance or charity care.
• Request an affordable payment plan if you cannot pay immediately.
• Ask whether the provider offers a discount for paying a reduced amount.
• Check your credit reports for inaccurate medical collection information.
• Keep records of bills, payments, correspondence, and agreements.

The CFPB notes that nonprofit hospitals are generally required to maintain financial assistance policies, although consumers may still encounter problems accessing assistance.

If medical debt is part of a larger financial problem, avoid simply moving the balance onto another high-cost debt. For example, consumers dealing with payday loans can review how to get out of payday loan debt for additional debt-management information.

Can You Negotiate Medical Debt?

In some situations, consumers can negotiate directly with medical providers or collection agencies.

You may be able to request:

• A reduced balance
• An interest-free payment plan
• A financial assistance review
• A payment arrangement
• Correction of billing errors

If you're also dealing with credit card balances caused by medical expenses, learning how to negotiate credit card debt yourself can help you understand the basics of negotiating unsecured debt.

The key is to get any settlement or payment arrangement in writing before making a payment.

Frequently Asked Questions

How much medical debt exists in the US?

KFF estimates that Americans owe at least $220 billion in medical debt, based on government data.

How many Americans have medical debt?

The number depends on how medical debt is defined. KFF found that 41% of adults had some form of health care debt in its 2022 survey, while its government-data analysis estimated 14 million adults owed more than $1,000.

Does medical debt affect credit scores?

It can, particularly when medical bills enter collections and are reported to credit bureaus. However, credit reporting policies have changed substantially in recent years.

Can medical debt be removed from a credit report?

Certain medical collection accounts may be excluded under credit reporting policies. Consumers should review their reports for accuracy and dispute information that is incorrect.

Can medical debt be negotiated?

Yes. Consumers can ask providers or collectors about financial assistance, discounts, payment plans, or settlement options.

Conclusion

The latest medical debt statistics US data shows that medical expenses remain a major source of financial pressure for American households. At least $220 billion in medical debt is owed nationwide, millions of adults owe significant balances, and medical collections have affected millions of credit reports.

The numbers also show why medical debt should not be treated like ordinary consumer spending. It can result from unexpected illness or treatment and can affect insured and uninsured households alike.

If you're dealing with medical debt, start by checking the accuracy of your bills, asking about financial assistance, understanding your state-specific rights, and reviewing your credit reports. Taking action early may give you more options before an unpaid medical bill becomes a larger financial problem.