The Burden of Medical Debt in the United States: A Growing Crisis
For Devin Barrington-Ward, the sharp pain in his gut was unbearable. His chest ached, and his discomfort was growing worse by the minute. His family urged him to call for an ambulance, fearing his condition was severe. But even in the midst of such distress, Barrington-Ward had one pressing concern—cost.
Uninsured and fully aware of the financial burden an ambulance ride could bring, he made the difficult decision to have his mother drive him to the nearest hospital in rural Atlanta. Hours later, after undergoing multiple tests, consultations, and a CT scan, he was diagnosed with colitis. Though his medical condition improved, another hardship soon followed—a nearly $10,000 medical bill.
Now in debt, Barrington-Ward finds himself struggling to balance financial obligations with his aspirations. At 30 years old, he is focused on building his nonprofit, the Black Futurists Group, while also hoping to invest in his future by purchasing a home and starting a family. However, the weight of medical debt forces him to make difficult financial choices.
A Systemic Issue Impacting Millions
Barrington-Ward’s experience is far from unique. A 2020 Consumer Reports survey of 1,267 U.S. adults who paid hospital bills out-of-pocket found that medical debt disproportionately affects Black and Hispanic communities. This financial strain is not just an individual problem—it is a widespread crisis that continues to push many Americans into long-term financial instability.
Unlike countries such as Canada, Australia, and the United Kingdom, where residents have access to universal healthcare and do not fear financial ruin due to medical expenses, the United States operates under a vastly different system. In America, falling ill can often mean falling into debt.
According to the Department of Financial Services, over a quarter of Americans have debt in collections, and medical bills account for more than half of that debt. A 2018 study published by the Ministry of Health found that the total medical debt submitted to collection agencies was a staggering $81 billion. Furthermore, a 2019 study published in The American Journal of Public Health identified medical bills as one of the leading causes of bankruptcy.
The Ripple Effect of Medical Debt
Medical debt does more than drain bank accounts—it has a domino effect that disrupts financial stability for years. Even relatively small medical bills can cause long-term hardships.
For example, a 60-year-old father in Georgia was forced to dip into his children’s college savings to pay off his medical bills, jeopardizing their educational future. Meanwhile, a 25-year-old man in Montana had his wages garnished to cover medical expenses that totaled less than $1,000. These are just two among countless stories illustrating how even minor medical expenses can lead to major financial setbacks.
As healthcare costs continue to rise, many hospitals and medical systems are intensifying efforts to collect outstanding payments. A report from the Consumer Financial Protection Bureau warns that these aggressive collection tactics contribute to heightened stress levels, causing many individuals to delay or avoid seeking medical care altogether. This creates a vicious cycle where untreated conditions worsen, leading to even higher medical expenses down the road.
The Challenge of Recovery
Medical debt adds another layer of difficulty to financial recovery, especially for those living paycheck to paycheck. Harvard University researcher Ray Kluender, who specializes in medical debt analysis, explains, “Thousands of individuals simply don’t have the financial cushion to absorb the shock of an unexpected medical expense.”
This lack of financial stability forces people to make impossible choices—pay off medical bills or cover rent, groceries, and other basic necessities. In worst-case scenarios, individuals may take on high-interest loans or rely on credit cards, plunging them further into debt.
Potential Solutions and Moving Forward
Addressing the medical debt crisis requires systemic change. While healthcare reform remains a complex issue, there are steps individuals can take to minimize the financial strain:
Review Medical Bills for Errors – Studies have shown that medical billing errors are common. Always request an itemized bill and verify that you were not charged for services you did not receive.
Negotiate Costs – Many hospitals and providers offer financial assistance programs or payment plans. Don’t hesitate to ask for discounts or negotiate a lower rate.
Understand Your Insurance Coverage – If you have insurance, ensure that all claims were processed correctly. Sometimes, insurers deny claims in error, and appealing a denied claim can save thousands of dollars.
Seek Out Assistance Programs – Nonprofits and government programs may be able to help alleviate medical debt. Organizations like RIP Medical Debt purchase and forgive medical debt for individuals in need.
Plan for Medical Expenses – While not always possible, setting aside emergency funds for unexpected medical costs can help reduce financial strain in the long run.
Steps to Get Out from Under Medical Debt
If you’re already dealing with medical debt, here are steps you can take to regain control of your finances:
Check Your Bills for Errors – Request an itemized bill and dispute any inaccuracies.
Negotiate Your Debt – Contact the hospital or provider to see if they offer discounts, payment plans, or financial aid.
Consider a Payment Plan – Many providers allow interest-free installment payments over time.
Look Into Medical Debt Forgiveness Programs – Some charities and nonprofits help pay off or forgive medical debt.
Use a Health Savings Account (HSA) or Flexible Spending Account (FSA) – If available, these can help cover medical costs with pre-tax dollars.
Avoid High-Interest Loans or Credit Cards – Instead, explore low-interest personal loans or nonprofit credit counseling services.
Know Your Rights – Some states have protections against aggressive medical debt collection practices.
Seek Financial Counseling – A financial advisor or credit counselor can help develop a strategy to pay off your debt.
While these strategies can help individuals navigate their medical debt, a long-term solution requires broader healthcare reforms to prevent financial ruin due to illness. Until then, many Americans will continue facing the difficult reality of choosing between their health and their financial well-being.
Conclusion
Medical debt is not just a personal problem—it is a systemic issue that affects millions across the country. The consequences go beyond unpaid bills, impacting credit scores, mental health, and future financial opportunities. As the conversation around healthcare reform continues, it is crucial to acknowledge the real impact of medical debt and work toward solutions that ensure everyone has access to affordable medical care without the fear of financial devastation.
For now, education, advocacy, and awareness are key. By understanding the challenges, exploring available resources, and pushing for systemic change, we can move toward a future where seeking medical care does not come at the cost of financial ruin.
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