It’s Time to End Medical Debt

Medical debt continues to harm the health and financial stability of people and families across the country. One hundred million adults — 41 percent of all adults in the U.S. — hold medical debt in some form. The debt that patients accrue is often hidden as credit card balances, loans from family, or payment plans to hospitals and other medical providers.

We appreciate the announcement from the Biden-Harris administration that they will take steps to address the problem of medical debt. We also recognize that various federal agencies have stated their intentions to address the issue, but actions that fit the problem are needed now.

Demand action from the Biden-Harris administration on the medical debt crisis in America
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Aracely is standing in their home next to a chair, wearing a dark teal button-down blouse with rolled up sleeves to reveal a delicate tattoo that covers most of their right forearm. Kitchen cabinets and a countertop, and a collection of art in black frames on a wall, are in the background. Aracely, who wears large, light gray glasses, has dark, shoulder-length hair and wears a black-knotted headscarf that covers part of their head. Aracely has a slight smile with a closed mouth.
Between Life and Debt: Aracely's Story
Aracely was first diagnosed with breast cancer in 2018, and underwent a double mastectomy. It was difficult to keep up with the bills, but she managed. Three years later, while in remission, Aracely became pregnant with her second child. She had a baby boy in June 2021. Then she learned that the cancer had returned. Aracely believes that policymakers should do more to help people like her and protect them from medical debt. “No one wants to be sick and choose between life or debt,” Aracely said.
Urgency

Urgency

The driving force behind medical debt is simple — there aren’t enough protections in place for people accessing health care in the U.S. The burden is carried disproportionately by adults without insurance, women, Black and Hispanic adults, parents, immigrants, and those with lower incomes.

Medical debt is an issue of race equity, health and economic justice. Its effects are far-reaching: all too often, individuals delay or forgo treatment due to cost. Some providers deny treatment because an individual has medical debt or is unable to pay. For others, damaged or ruined credit after a medical procedure may upend their financial stability. They may experience drained savings, bankruptcy, stress, anxiety, and altered life trajectories. All because they got sick.

The Biden-Harris administration can take a series of specific steps — which are endorsed by dozens of local, state and national groups — to help tens of millions of people from crushing medical debt. To ensure economic security and access to care for all, these actions must be community-driven and centered in race equity and health justice.

We’re Taking Action

We’re Taking Action

More than 60 groups launched a campaign urging the Biden-Harris administration to do more to relieve medical debt for tens of millions of people. The campaign, led by Community Catalyst, sent two letters — one to the Internal Revenue Service (IRS) and Department of Treasury, and one to the Consumer Financial Protection Bureau (CFPB) — with specific executive actions the administration can take.

The letter sent to the IRS and Department of Treasury urges the administration to:

  • Bolster financial assistance policies to prevent people from incurring medical debt in the first place.
  • Regulate excessive charges from non-profit hospitals who are obligated to provide charity care or financial assistance to patients.
  • Protect people from harsh billing and collection practices like foreclosures, wage garnishment and bank account seizures.
  • Strengthen enforcement of regulations to be considered and receive tax breaks as a non-profit hospital.

The letter sent to the CFPB urges the administration to:

  • Prohibit medical debt from showing up on credit reports by enhancing protections in the Fair Credit Reporting Act (FCRA).
  • Eliminate deferred interest in medical credit cards (often referred to as “buy now, pay later”).
  • Undertake aggressive enforcement against unfair, deceptive, and abusive hospital practices, which can prevent debt from being waived or forgiven by hospital policies.
Community Stories

Community Stories

Waiting for the Bill: Kaylynn’s Story Kaylynn, who has long, wavy light brown hair. leans against a wall with gray siding. She is one of tens of millions of Americans faced with medical debt. Kaylynn

Waiting for the Bill: Kaylynn’s Story

Mano a Mano: Suzy’s Story Suzy sits on the sofa with her mother, Angelina, in an embrace. Angelina wears a yellow cardigan over a patterned long dress. Suzy wears a salmon pink sleeveless blouse. The room in warmly lit. The family overcame medical debt thanks to charity care. Suzy

Mano a Mano: Suzy’s Story

Planting Seeds for Change: SOWEGA Rising Sherrell Byrd, Founder & Executive Director of SOWEGA Rising, which builds community power in southwest Georgia. Sherrell started the non-profit after her experience with medical debt.. Sherrell

Planting Seeds for Change: SOWEGA Rising

“What the whole country should know is that health care is not a business. Health care is a right.”
Advocacy in Action: Sahida’s Story
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Related Resources

Related Resources

Comments to CFPB Regarding Medical Payment Products

Official comments from Community Catalyst and the undersigned organizations in response to the Consumer Financial Protection Bureau’s Request for Information Regarding Medical Payment Products (RFI).

Learn more

A Path to End Medical Debt

This brief offers a policy framework to support state and local health advocates — and policymakers — invested in addressing medical debt and aggressive billing and collection practices.

Learn more

Case Study: Illinois

The story of a successful advocacy campaign to address medical debt disparities among immigrant communities in Illinois, led by a coalition of state and community-based advocates.

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Case Study: New Mexico

Health care advocates in New Mexico successfully campaigned to protect access to affordable medical care, and mitigate harm from medical debt — resulting in the passage of three legislative bills.

Learn more

Case Study: Maryland

Medical debt threatens the economic stability of Marylanders, especially people with low incomes in communities of color. More than 12 percent of Marylanders have medical debt in collections, with the number rising to 15 percent for people from communities of color.

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