Medical debt in the United States is already estimated to be over $220 billion. The situation is becoming complex and difficult for many: according to studies by KFF, around 40% of the population has debt due to medical or dental bills.
And the outlook could get quite complicated for 2026 if we take into account the combination of several negative factors, two of the most important: the increase in healthcare prices in the US and the loss of expanded subsidies for Obamacare insurance, which could leave millions of people without a health plan due to the considerable increase in monthly premiums.
At Dulcinea Insurance, we encourage you to keep reading this post so you can learn about the magnitude of a problem and, above all, how to protect yourself. If you still have questions after reading the article, or if you wish to get a quote for affordable health insurance, you can contact us at the phone number 786-910-9487. Our service is free and personalized.
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Medical debt directly affects family finances in the United States.
The problem of debt with medical institutions is so large that, according to the survey created by West Health and Gallup, in 2024 more than 31 million Americans (12% of the population) had to borrow money to pay for healthcare expenses, despite the fact that the majority of the population has some form of health plan.
Among the population groups most likely to have medical debt are African Americans (23.1%), Hispanics (16.1%), low-income individuals, and those over the age of 50.
The same survey asked Americans how concerned they are about debts owed to hospitals and other healthcare facilities, and 58% of the population said they are concerned about how this issue affects their household finances.
Health Debts: Insured vs. Uninsured
Having active health insurance makes a big difference. Those who have coverage face less risk of going into debt or bankruptcy, thanks to a key element of medical policies: the out-of-pocket maximum. This means that once the insured's annual out-of-pocket limit is reached, 100% of the remaining costs are covered by the insurance company.
For example, under a Silver plan, the maximum annual out-of-pocket expense might be $1,800, and under a Bronze plan, the annual cap would be around $9,500.
The difference is clear, according to the Kaiser Family Foundation:
22% of insured people say they have trouble paying for their healthcare
55% of the uninsured have difficulty paying for their medical expenses
Without a doubt, having insurance can make the difference between a manageable debt… and financial ruin.
Medical debt consequences in USA
One of the biggest problems that these medical debts bring for individuals and families is that the majority of them, 63%, confess to having to reduce their standard of living to be able to maintain their health debt payments.
That means:
Incurring credit card debt
Accept a second job
Delaying the purchase of a house
Stop paying other obligations
Cut back on food, clothing, or housing expenses
In addition to this, most people who suffer from this distressing situation feel pursued by debt collection agencies and many of them see their credit history diminished. Many people describe losing 250 points on their credit score for this simple reason.
And another quite unpleasant consequence arises: one in seven adults with medical debt says that at some point a healthcare center has denied them care for the simple reason of carrying a previous debt.
All this leads to many deciding to treat themselves with home remedies or seek forms of care on the black market, as demonstrated by the fact that 62% of people who have health debt have self-medicated at some point.
Half of all adults in the U.S. cannot pay a $500 medical bill in cash
Imagine you’re in an emergency situation and need to see a doctor or go to the hospital. If the bill comes to more than 1,450,000 pesos, can you afford it? The answer is very concerning, because Half of the country's population says they do not have $500 available for this type of situation.
And a statistic arises that sets off all the alarms. Around 17% of those who have medical debt end up declaring bankruptcy or losing their home for this reason. And let's go deeper: when looking at bankruptcy statistics in the country, 66.5% of them originate precisely from health debts that go unpaid.
Health debts in 2026: the perfect storm
2026 could become a «critical year for the United States» with the increase in unpaid healthcare debts by its population. Three factors are coming together like a perfect storm:
- Inflation in the economy
- the sustained increase in healthcare prices
- the end of expanded Obamacare subsidies.
If expanded subsidies expire, millions of people who currently pay for an affordable plan could be left without health insurance. Likewise, most insurers proposed an 18% increase in their monthly premiums for 2026. And the third point, which is a secret to no one, the healthcare system in the United States continues to become more expensive due to a combination of more costly medications and hospitals and a shortage of healthcare staff.
Altogether, everything points to a more difficult 2026 for those who already face medical debt or live on the edge of their budget.
Therefore, the recommendation is to plan ahead, review health insurance coverage, and look for more affordable health plan alternatives before the increases arrive.
Dulcinea Insurance Tips to Avoid Medical Debt
At Dulcinea Insurance, we recommend the following to help you avoid falling into these sad statistics of people with long-term medical debt in the United States:
- get affordable health insurance: it will help you reduce healthcare costs in the US
- take advantage of preventive medicine: regular consultations and annual checkups prevent costly surprises.
- compare prices before you go: some hospitals or clinics charge very different rates for the same services.
- Create an emergency fund for health expenses: available savings can make a difference in the face of the unexpected.
And if you need help to get a quote and enroll in an affordable health plan, our team is ready to assist you. The consultation is free and 100% in Spanish. Call us at [phone number]
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