The Burden of Medical Debt in the United States | KFF (2024)

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The Burden of Medical Debt in the United States | KFF? ›

This analysis of government data estimates that people in the United States owe at least $220 billion in medical debt. Approximately 14 million people (6% of adults) in the U.S. owe over $1,000 in medical debt and about 3 million people (1% of adults) owe medical debt of more than $10,000.

Using this approach, the SIPP survey suggests that total medical debt owed was at least $220 billion at the end of 2021. This total represents the aggregate medical debt for people with over $250 and top coded up to $225,000 in medical debt.

about $88 billion in medical debt collections on consumer credit reports with one consumer reporting company as of June 2021.

Following the release of a CFPB report in March 2022 that found that Americans owed $88 billion in unpaid medical bills, the three largest credit reporting agencies announced that they would no longer include paid medical debts, unpaid medical debts less than a year old, and medical debt under $500 from credit ...

Although medical debt is more concentrated among certain groups – people with low incomes, the uninsured, people unable to work due to their health – it affects people and households across the financial spectrum.

U.S. health care spending grew 4.1 percent in 2022, reaching $4.5 trillion or $13,493 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.3 percent.

Medical debt collections on a credit report can impact your ability to buy or rent a home, raise the price you pay for a car or insurance, and make it more difficult to find a job.

Consumers can submit complaints about financial products or services by visiting the CFPB's website or by calling (855) 411-CFPB (2372). Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected].

WASHINGTON, D.C. - The Consumer Financial Protection Bureau (CFPB) today proposed a rule that would remove medical bills from most credit reports, increase privacy protections, help to increase credit scores and loan approvals, and prevent debt collectors from using the credit reporting system to coerce people to pay.

Unpaid medical debt that is in collections can be reported to credit bureaus after one year. At that point, it remains on your credit report for seven years, the same as any other kind of debt. As of 2023, medical debt can only impact your credit score if it's over $500.

How do I remove a medical collection from my credit report? ›

Unpaid medical collection accounts over $500 can remain on your credit report for seven years after they become delinquent; however once they are paid, they will be removed from your report.

Judgments stay either seven years or until the statute of limitations in your state is up, whichever is longer. And here's one more caveat: While unpaid medical bills will come off your credit report after seven years, you may still be legally responsible for them depending on the statute of limitations.

This analysis of government data estimates that people in the United States owe at least $220 billion in medical debt. Approximately 14 million people (6% of adults) in the U.S. owe over $1,000 in medical debt and about 3 million people (1% of adults) owe medical debt of more than $10,000.

You can take steps to make sure that the medical bill is correctly calculated and that you get any available financial or necessary legal help. If you do nothing and don't pay, you could be facing late fees and interest, debt collection, lawsuits, garnishments, and lower credit scores.

Not having health insurance can lead to large debt, affect your health if you delay care and may even hurt you at tax time, depending on your state.

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

The industry standard benchmark for Bad Debt Percentage is typically around 2-3% of net patient revenue. This means that for every $100 in net patient revenue, a healthcare organization should aim to write off no more than $2-$3 as bad debt.

Including deductibles and premiums, Americans spend an average of $12,530 on medical expenses every year.

And they polled more than 1,200 people across the country. And the survey found 41% of U.S. adults have health care debt. That is huge. But the KFF polling also found that there are groups bearing a disproportionate share of that burden.