Medical debt in the US reaches at least $220 billion — The Guardian

In the US, medical debt reached at least $220 billion in 2024, although charities and state authorities are increasing debt relief efforts. About 14 million people had medical debt exceeding $1,000, while another 3 million owed more than $10,000, The Guardian reports, citing the research organization KFF.

Insurance does not always protect against debt

According to Health Affairs Scholar, 21% of US households had an overdue medical bill in 2024. KFF attributes the problem to the high cost of treatment and the lack of health insurance among part of the population. At the same time, insured patients also face financial difficulties because of high deductibles and substantial out-of-pocket payments.

In 2021, more than half of bills sent to collection agencies concerned medical care, the US Consumer Financial Protection Bureau noted. Experts stress that debt cancellation helps people at a particular moment but does not eliminate the causes of debt — the unaffordability of necessary treatment.

More current news is available on the UA.News Telegram channel Telegram.

Debt relief programs

The nonprofit organization Undue Medical Debt buys debt portfolios from medical institutions and collection agencies at a significant discount. It estimates that a $1 donation can cancel about $100 in medical debt. The organization says it has facilitated the cancellation of $53.3 billion in total, with nearly half of that amount cancelled during the current year.

Illinois authorities allocated $10 million to Undue Medical. According to the state, this made it possible to cancel more than $1.1 billion in medical debt for its residents. The organization Dollar For helps patients apply for financial assistance to cancel or reduce medical debt, while the HealthWell Foundation supports payments for prescription drug copayments, insurance premiums, and deductibles.

Federal law requires nonprofit hospitals to have financial assistance policies, but does not set minimum eligibility criteria. According to the Commonwealth Fund, 18 states have introduced requirements to provide such assistance at all hospitals, including commercial ones, while six states have required hospitals to check patients' eligibility for assistance and, where eligible, cancel the debt.