Collection agencies held $140 billion in unpaid medical debt in 2020, according to a study published July 20 in JAMA.
Researchers examined a nationally representative panel of consumer credit reports between January 2009 and June 2020. Below are four other notable findings from their report.
- An estimated 17.8 percent of Americans owed medical debt in June 2020. The average amount owed was $429.
- Over the time period studied, the amount of medical debt became progressively more concentrated in states that don't participate in the Affordable Care Act’s Medicaid expansion program.
- Between 2013 and 2020, states that expanded Medicaid in 2014 experienced a decline in the average flow of medical debt that was 34 percentage points greater than the average medical debt flow in states that didn't expand Medicaid.
- In the states that expanded Medicaid, the gap in the average medical debt flow between the lowest and highest ZIP code income levels decreased by $145, while the gap increased by $218 in states that did not expand Medicaid.