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What Does Medical Debt Look Like Across the United States?

Jan 16, 2023

Medical debt in the United States is at an all-time high. It is not a surprise that medical debt is the biggest generator of debt owed to collection agencies across the U.S. With over 90 percent of people in the United States having medical debt, it is evident that people are losing the ability to offset medical debt.

A survey by the Kaiser Foundation shows that medical debt owed by people living in the U.S. is more than $195 billion. The survey also shows that one out of ten people in the United States have medical debt.

Medical debt isn’t just limiting people’s access to health care; it’s also affecting every aspect of their standard of living. NPR reported that people with medical debt are spending less on basic needs like food, clothing, and other household items.

In this article, we’ll focus on how medical debt affects people from various states, ethnicities, genders, and age groups.

 

  1. Medical Debt in Different States

Texas has the highest medical debt in the U.S., with a total whopping debt of $14.6 billion. Florida follows with a total debt of $8.2 billion. California isn’t far behind, with medical debt totaling $7.5 billion, while Georgia owes half as much as California, with a total medical debt of $3.62 billion.

States with the lowest total amount of medical debt

First on the list is Vermont, with $42 million total in medical debt. North Dakota is second, with a total medical debt of $61 million, and third is Rhodes Island, with a total medical debt of $72 million. South Dakota is sitting in the fourth position with a total medical debt of $79 million, and Hawaii with $126 million.

States with the most residents owing medical debt

Virginia tops the list with almost 30 percent. South Carolina follows, with 23 percent of its residents having medical debt. Oklahoma, Louisiana, and Texas share the third position, with 22 percent of their residents owing medical debt.

States with the least residents owing medical debt

Minnesota takes first place with 2.3 percent of the residents having medical debt. Massachusetts is second with 4.4 percent of its residents owing medical debt, while 5 percent of Washington state’s residents owe medical debt, and Vermont with 5.4 percent of its residents owing medical debt.

 

  1. Medical Debt Among Ethnic Groups

According to the Kaiser Foundation, Black Americans have 16 percent of medical debt, which is the highest of any ethnicity.

The second highest is those who are neither Black Americans, White Americans, Hispanic, nor Asians. This group accounts for 10 percent of medical debt, while White Americans and Hispanics have 9 percent each. The lowest are Asians, who account for 4 percent.

  1. Medical Debt Among Age Groups

In the U.S., different age groups make up the number of consumers owing medical debt. Reports show that nearly 6 percent (16 million) of adults in the U.S. have more than $1,000 in medical debt. The same survey reports that 1 percent (3 million) adults in the United States owe over $10,000 in medical debt.

Adults from 35 – 49 had medical debt of 11 percent. Middle-aged people owe the most debt. A poll  by Medical Economics shows that Gen Z and Millennials unwantedly pass on mortgage payments or rent to prioritize offsetting medical debt.

Medical debt is cutting deep into every generation’s finances as it impacts their credit score. Health insurance isn’t entirely the answer, because even with health insurance, 68 percent of Gen Z admitted being affected by medical debt.

The frustrating part of all of this is how debtors plan to repay these loans. Baby Boomers plan to use their retirement savings to offset their medical loans. And millennials are looking at crowdfunding to offset their loans, which isn’t sustainable, as nearly everyone in the U.S. owes medical debt.

 

  1. Medical Debt Between Genders

Women without health insurance owe 11 percent of medical debt, and men owe 8 percent. According to a U.S. Census Bureau study, almost 1 in 8 women have medical debt, compared to 1 in 11 men. The gap is due to the wage gap between men and women in the U.S.

Women who give birth are more likely to incur up to $19,000 in health costs than those who don’t. The cost of pre-natal checkups, consultations, birthing, and post-natal visitations is why many women postpone giving birth.

 

A Gallup poll found that 51 percent of women in the U.S. are worried about going bankrupt if they have any major health challenge. Health insurance helps, but only partially, as out-of-pocket medical costs keep increasing.

Medical expenses increasing means that there will be a rise in medical debt, and 20 percent of women who have medical debt have experienced an increase in debt in recent years.

 

Key Takeaways

  1. Medical debt is the biggest debt in collections in the U.S.
  2. Women owe more medical debt than men.
  3. Black Americans have the highest medical debt compared to other ethnic groups.
  4. Medical debt is preventing younger generations from taking up mortgages or renting houses.
  5. Health insurance coverage doesn’t prevent people from having medical debt.
  6. Medical debt will continue to increase.
  7. Older generations plan to repay their medical debt with retirement savings.
  8. 90 percent of people in the United States owe healthcare debt.
  9. Women who don’t give birth owe less medical debt.

10. Middle-aged people owe more medical debt.