United States healthcare reforms expected to increase medical debt

New healthcare reforms in the United States are expected to drive a significant increase in medical debt. Under the “One Big Beautiful Bill Act” (HR 1), millions of Medicaid beneficiaries will face stricter eligibility requirements starting in 2027. In 44 states, individuals may be required to prove they work, study, or volunteer at least 80 hours per month or earn at least $580 monthly to maintain coverage. Additionally, the law reduces retroactive Medicaid coverage and mandates eligibility renewals every six months.

As coverage becomes harder to maintain, artificial intelligence is increasingly being deployed to manage the resulting financial landscape. AI technologies are being used to record exam notes, code medical visits, and automate billing and debt collection processes. While financial analysts at JP Morgan view AI integration in medical coding and collections as a success, experts warn that the combination of reduced subsidies and stricter requirements could leave millions without insurance and increase out-of-pocket costs for both insured and uninsured populations.