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Medical debt affects over 26% of Americans, study finds
A new analysis by the Urban Institute reveals that 26.6% of U.S. adults reported owing medical debt as of December 2025. The financial burden is particularly evident among older populations, with 17.6% of Americans aged 65 and older reporting medical debt despite having Medicare coverage.
Among those struggling with medical debt, 53.8% owe at least $1,000, while 15.5% have balances exceeding $5,000. The debt has significant personal consequences, as 35.2% of affected adults reported being contacted by collection agencies and 21.7% stated the debt damaged their credit scores.
Experts attribute the rising debt to soaring hospital costs and a lack of market competition. Data from Rice University’s Baker Institute indicates that hospital prices rose by more than 220% between 2000 and 2022. Furthermore, KFF reports that in nearly half of U.S. metropolitan areas in 2024, the inpatient hospital market was controlled by only one or two health systems.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] 26.6% of U.S. adults reported owing medical debt as of December 2025. www.ibtimes.com
- [○ 1 SOURCE] 17.6% of Americans aged 65 and older reported carrying medical debt in December 2025. www.ibtimes.com
- [○ 1 SOURCE] 53.8% of adults with medical debt owed at least $1,000, and 15.5% owed $5,000 or more. www.ibtimes.com
- [○ 1 SOURCE] 35.2% of adults with medical debt were contacted by collection agencies, and 21.7% reported credit score damage. www.ibtimes.com
- [○ 1 SOURCE] In nearly half of U.S. metropolitan areas in 2024, one or two health systems controlled the inpatient hospital market.
- [○ 1 SOURCE] Hospital prices increased by more than 220% between 2000 and 2022.