Medical debt is the leading cause of bankruptcy in America and affects roughly 100 million people. Here’s the full picture of medical debt in the US.
Medical Debt Overview
| Metric | Value |
|---|---|
| Americans with medical debt | ~100 million |
| Total US medical debt | $220 billion |
| Average medical debt (among those with debt) | $2,459 |
| Median medical debt | $850 |
| Adults who owe more than $1,000 | 14 million |
| Adults who owe more than $10,000 | 3 million |
| Bankruptcies caused by medical debt | 66.5% |
Medical Debt by Age Group
| Age Group | % With Medical Debt | Average Amount |
|---|---|---|
| 18-24 | 24% | $1,200 |
| 25-34 | 36% | $2,100 |
| 35-44 | 42% | $3,200 |
| 45-54 | 44% | $3,800 |
| 55-64 | 39% | $3,500 |
| 65+ | 21% | $1,800 |
Medical debt peaks for those aged 45-54, when health issues become more common but before Medicare coverage begins at 65.
Medical Debt by State
| State | % Adults with Medical Debt | Average Amount | Rank |
|---|---|---|---|
| Mississippi | 36% | $3,200 | 1 (worst) |
| West Virginia | 35% | $3,100 | 2 |
| Alabama | 33% | $2,900 | 3 |
| Arkansas | 33% | $2,800 | 4 |
| Louisiana | 32% | $2,900 | 5 |
| Oklahoma | 32% | $2,700 | 6 |
| Tennessee | 31% | $2,800 | 7 |
| Kentucky | 31% | $2,700 | 8 |
| South Carolina | 30% | $2,600 | 9 |
| Texas | 29% | $2,500 | 10 |
| … | … | … | … |
| Hawaii | 12% | $1,500 | 46 |
| Massachusetts | 11% | $1,400 | 47 |
| Vermont | 11% | $1,300 | 48 |
| Minnesota | 10% | $1,400 | 49 |
| District of Columbia | 9% | $1,200 | 50 (best) |
States that did not expand Medicaid generally have higher rates of medical debt.
Medical Debt by Income Level
| Household Income | % With Medical Debt | Average Amount |
|---|---|---|
| Under $25,000 | 46% | $2,800 |
| $25,000-$49,999 | 38% | $2,600 |
| $50,000-$74,999 | 30% | $2,300 |
| $75,000-$99,999 | 24% | $2,100 |
| $100,000-$149,999 | 18% | $1,800 |
| $150,000+ | 10% | $1,500 |
Lower-income households are hardest hit — they’re more likely to have medical debt and less able to pay it off. See how this compares with average American debt overall.
Medical Debt by Insurance Status
| Insurance Status | % With Medical Debt | Average Debt |
|---|---|---|
| Uninsured | 53% | $4,200 |
| Medicaid | 30% | $1,800 |
| Employer insurance | 28% | $2,200 |
| ACA marketplace | 34% | $2,600 |
| Medicare | 18% | $1,500 |
Even with insurance, high deductibles, copays, and out-of-network charges leave millions with significant medical bills.
Most Common Causes of Medical Debt
| Cause | % of Medical Debt Cases |
|---|---|
| Hospital stays / surgery | 40% |
| Emergency room visits | 25% |
| Chronic condition management | 15% |
| Pregnancy and childbirth | 10% |
| Dental procedures | 7% |
| Mental health treatment | 3% |
For the cost of specific medical events, see our guide on the cost of having a baby.
Medical Debt vs Other Types of Debt
| Debt Type | Average Amount | Americans Affected |
|---|---|---|
| Mortgage | $244,500 | 84 million |
| Student loans | $37,900 | 43 million |
| Auto loans | $24,100 | 107 million |
| Credit cards | $6,500 | 175 million |
| Medical debt | $2,459 | 100 million |
| Personal loans | $11,500 | 23 million |
While the average amount is lower than other debts, medical debt is unique because it’s usually unexpected and involuntary.
Recent Changes to Medical Debt Rules
| Change | When | Impact |
|---|---|---|
| Medical debt under $500 removed from credit reports | 2023 | Helped ~40 million Americans |
| Paid medical collections removed from credit reports | 2023 | Immediate score improvement for millions |
| 1-year waiting period before reporting | 2023 | More time to resolve bills or dispute errors |
| CFPB proposed ban on medical debt in credit reports | 2024 | Would remove all medical debt from credit scoring |
| No Surprises Act | 2022 | Protects against many surprise out-of-network bills |
How to Deal With Medical Debt
| Strategy | Details |
|---|---|
| Verify the bill | 30-80% of medical bills contain errors — always request itemized bills |
| Negotiate directly | Hospitals often reduce bills by 25-50% for uninsured or financial hardship |
| Apply for financial assistance | Non-profit hospitals are required to offer charity care programs |
| Set up a payment plan | Most providers offer interest-free payment plans |
| Check for state protections | Many states limit medical debt collection practices |
| Consider medical credit cards carefully | 0% intro offers can help, but deferred interest is risky |
Bottom Line
Medical debt remains a massive burden for American families. If you’re dealing with medical bills, always verify charges, negotiate directly, and explore financial assistance before the debt goes to collections. Building an emergency fund is one of the best defenses against unexpected medical costs.