One in three U.S. adults struggles with medical debt and its repercussions

Medical debt is an inescapable fact of life for many people in the United States.

More than one-third of Americans aged 18 and older carry medical debt, according to the HealthCare.com Medical Debt Survey 2021. Moreover, six in 10 adults with medical debt received health care knowing it would put them in debt. More than half had debt in excess of $1,000, and 14% owed more than $5,000.

Many Americans are being driven into debt despite having health insurance:

• 44% say their plan didn’t cover the type of service received or they were out of network.
• 30% say their deductible was too steep and they couldn’t afford to pay.
• 18% say their coinsurance was too high.
• 8% say the hospital billed them incorrectly.

Accidents or injuries were the leading cause of debt (17%), followed by dental, vision and hearing services, and chronic diseases such as cancer, each at 15%.

Not all of the costs of health-care debt can be measured in dollars and cents; Twenty-two percent of U.S. adults with medical debts skip food because their debts prevent them from buying. One in five skip education, and 18% are prevented from paying their rent or mortgage. Meanwhile, 44% of respondents say medical debt harmed their credit score, and 42% say their bills have been sent to a debt collector.

Americans with medical debt don’t see a quick resolution to their struggles. One in three believe it will take longer than two years to pay off their debt. In this environment, 37% are extremely or moderately concerned that medical debt will affect their financial health. A similar number, 33%, are extremely or much stressed by their debt.

Almost half of Americans with medical debt say they tried to negotiate their debt. The largest number spoke with their health care providers (31%). Twenty-one percent negotiated with a debt collection agency, and 12% with their insurance company.

“Folks should understand their explanation of benefits and get everyone — bill collectors, insurance firms and your doctor — on the same page,” said Jeff Smedsrud, cofounder of HealthCare.com and board member of RIP Medical Debt. “Double-check your statement for accuracy and remember you may be able to negotiate a discount.”

Read more: 

• As if student loans weren’t enough, millennials also rack up the most medical debt
• Medicaid expansion takes a bite out of medical debt
• Consumers more likely to pay hospital bills if costs are clear