$195 Billion in Medical Debt

Nearly 1 in 10 Americans has significant medical debt, according to an analysis of the numbers by Peterson-KFF Health System Tracker. KFF researchers analyzed data from the Census Bureau's Survey of Program Participation to determine who had significant medical debt as of December 2019 and how much they owed. They defined "significant" medical debt as $250 or more in unpaid medical bills. 

Overall, 23 million people—9 percent of U.S. adults—have significant medical debt. Those most likely to have medical debt are people aged 50 to 64 (12 percent), Blacks (16 percent), people in nonmetropolitan areas (13 percent), residents of the South (12 percent), and the uninsured (13 percent). But medical debt is common in every demographic segment. Even among those with health insurance, 9 percent have significant medical debt. 

Distribution of adults with significant medical debt by how much they owe, 2019

13% owe between $250 and $500

18% owe between $501 and $1,000

20% owe between $1,001 and $2,000

22% owe between $2,001 and $5,000

13% owe between $5,001 and $10,000

13% owe more than $10,000

Aggregate medical debt for those with significant medical debt adds up to $195 billion in unpaid bills, the researchers estimate. "Medical debt remains a persistent problem even among people with insurance coverage," the researchers report. "The fact that medical debt is a struggle even among households with health insurance and middle incomes indicates that simply expanding coverage will not erase the financial burden caused by high cost-sharing amounts and high prices for medical services and prescription drugs," they conclude.

Source: Peterson-KFF Health System Tracker, The Burden of Medical Debt in the United States