The Burden of Medical Debt in the United States

The state of the U.S. health system in 2022 and the outlook for 2023 – Peterson-KFF Health System Tracker

The burden of medical debt in the United States

By Matthew Rae Twitter, Gary Claxton, Krutika Amin Twitter, Emma Wager Twitter, Jared Ortaliza, and Cynthia Cox Twitter  March 10, 2022

Despite over 90% of the United States population having some form of health insurance, medical debt remains a persistent problem.

High deductibles and other forms of cost sharing can contribute to individuals receiving medical bills that they are unable to pay, despite being insured

Using federal survey data, we estimate people in the U.S. owed at least $195 billion in medical debt in 2019, and most people with medical debt owed over $1,000.  We find that 23 million people (nearly 1 in 10 adults) owe significant medical debt.  Out-of-pocket costs can also send American families, many of whom are living paycheck to paycheck, into medical debt.  

Using federal survey data, we estimate people in the U.S. owed at least $195 billion in medical debt in 2019, and most people with medical debt owed over $1,000.  What may seem to be small differences in spending growth rates are very meaningful over time. Per capita health expenditures are projected to grow from $13,037 in 2021 to $19,294 in 2030, which is an average annual growth rate of 4.5 percent