Sweeping debt-forgiveness programs risk creating new problems without addressing the underlying costs of care. Policymakers should resist treating every outstanding medical bill as a crisis demanding government intervention.
Medical debt can cause serious hardship.
But the Urban Institute’s own findings paint a less alarming picture.
The first question is what counts as medical debt. The Urban Institute found that 26.6% of adults reported that they or their families owed money for medical or dental care, including bills paid in installments, credit card balances, and loans from friends and relatives.
Just 15.4% reported past-due medical bills or bills they were unable to pay. That’s a significant number but considerably smaller than the headline statistic.
The Federal Reserve, meanwhile, found that 18% of adults had outstanding medical debt in 2025. That share has fluctuated between 15% and 18% since 2019.
In other words, there’s little evidence of an escalating medical debt crisis.
The amounts owed also matter.
According to the Urban Institute, more than 46% of people with medical debt owed less than $1,000. Just 15.5% — roughly 4% of all American adults – owed $5,000 or more.
Even a few hundred dollars can strain a tight household budget. But there’s a difference between having an outstanding medical bill and facing serious financial hardship because of it.
The distinction matters when lawmakers propose sweeping solutions.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
No Sound Reasons to Mislead on Medical Debt
Sally C. Pipes
Sweeping debt-forgiveness programs risk creating new problems without addressing the underlying costs of care. Policymakers should resist treating every outstanding medical bill as a crisis demanding government intervention.
Medical debt can cause serious hardship.
But the Urban Institute’s own findings paint a less alarming picture.
The first question is what counts as medical debt. The Urban Institute found that 26.6% of adults reported that they or their families owed money for medical or dental care, including bills paid in installments, credit card balances, and loans from friends and relatives.
Just 15.4% reported past-due medical bills or bills they were unable to pay. That’s a significant number but considerably smaller than the headline statistic.
The Federal Reserve, meanwhile, found that 18% of adults had outstanding medical debt in 2025. That share has fluctuated between 15% and 18% since 2019.
In other words, there’s little evidence of an escalating medical debt crisis.
The amounts owed also matter.
According to the Urban Institute, more than 46% of people with medical debt owed less than $1,000. Just 15.5% — roughly 4% of all American adults – owed $5,000 or more.
Even a few hundred dollars can strain a tight household budget. But there’s a difference between having an outstanding medical bill and facing serious financial hardship because of it.
The distinction matters when lawmakers propose sweeping solutions.
Read the entire op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.