Many adults aged 19 to 64, despite having private insurance, are facing medical debt. According to a report published on September 17, nearly one-third of these individuals are struggling with unpaid medical bills, and almost half of them have debts of $2,000 or more.
Causes of Medical Debt
Sarah R. Collins, a senior researcher at the Commonwealth Fund and one of the authors of this report, states that medical debt issues often arise from routine care, including doctor visits and treatment of chronic conditions. Additionally, high deductibles are another common reason for this problem. She added, "Individuals are managing routine care and bills that accumulate over time."
Read more: Greg Stanton answered Democrats' questions at the confirmation hearing
Consequences of Medical Debt
This study included interviews with a representative sample of over 6,300 adults in 2025, as well as focus group analyses where individuals shared their experiences with healthcare services. In these groups, many individuals expressed surprise at the high amount of their medical bills despite having insurance coverage.
The problem of medical debt among insured Americans may increase in the coming years as health insurance costs continue to rise. According to a survey in August, the cost of health benefits per employee is projected to increase by 8.2% by 2027, the highest rate since 2003. Some employers may reduce their plans and shift more costs onto employees. Additionally, after Congress decided not to extend subsidies for individuals purchasing health insurance from the Affordable Care Act marketplaces, many consumers turned to lower-quality plans that may end up costing them more if they face serious health issues.
According to this study, 30% of respondents have cut back on basic needs such as food, heat, or rent to cover their healthcare costs, and 37% of those with debt have used part or all of their savings to pay their bills.
After experiencing medical debt, individuals often become hesitant to seek further medical care. This issue can lead to higher costs in the long run, as they may require emergency services instead of low-cost preventive care.
Medical debt places a heavy burden on Americans. Collins states, "In our focus groups, there is a significant fear of credit scores deteriorating due to medical debt."
Fifteen states have enacted various laws to limit the use of medical debt in credit decisions and credit reports. The Consumer Financial Protection Bureau had drafted a final federal rule aimed at keeping medical debt out of credit reports and credit decisions, but a federal court overturned this rule in July 2025 with the arrival of the Trump administration.
Read more: Effective methods to prevent crying in inappropriate situations · Costs of treating vaccine injuries exceeded the amount paid to victims
