Medical debt affects over 25% of U.S. adults amid healthcare service closures

A survey by the Urban Institute reveals that 26.6% of adults in the United States report being in debt to medical providers. Approximately 15% of respondents are unable to pay their medical bills, while 10.9% have used credit cards to pay for services over time.

Medical debt prevalence varies by income and race. The highest rate of debt (37.8%) was found among those earning between 100% and 199% of the federal poverty level. Black (37.5%) and Hispanic (34.8%) adults reported higher rates of debt compared to White (23.1%) and Asian (11.3%) adults. Hospital care is the primary driver of this debt, accounting for 52.1% of cases, followed by specialist services and dental care.

Concurrently, healthcare facilities are facing significant financial strain following reductions to Medicaid and the Affordable Care Act. More than 1,250 providers, including hospitals, nursing homes, and clinics, have closed, cut services, or face potential shutdown. This has led to the disappearance of maternity wards in several regions, such as Illinois and Nevada, forcing patients to travel longer distances for essential care.