Full List of States with Highest Medical Debt
Medical debt is a growing concern in the US. Many Americans are experiencing financial instability, with one in five struggling to pay their medical bills.
Americans are facing over $220 billion in unpaid medical bills.
Medical bills are a significant contributor to personal bankruptcy but not the single biggest factor; other factors, like credit debt and personal loans, also play substantial roles.
Despite spending trillions of dollars on healthcare yearly, U.S. national healthcare expenditure continues to rise.
Unpaid Medical Bills by States
Here are state-by-state figures for the percentage of residents burdened with unpaid medical bills or past due for payment (1):
- South Dakota has the highest % of adults with medical debt at 17.7%.
- Mississippi follows with 15.2%.
- North Carolina, West Virginia, and Georgia also have high rates, with 13.4%, 13.3%, and 12.7%, respectively.
- Conversely, Hawaii and Washington D.C. have the lowest shares at 2.3% and 2.7%.
States with Highest Medical Debt
Medical debt is one of those common problems that can affect regardless of gender, age, ethnicity, and education level. Even people who are considered to be financially stable can experience medical debt.
A government survey showed that more than half of Americans with unpaid medical bills have no other debt listed on their credit report.
Unpaid medical bills have become one of the most common factors preventing people from buying houses or getting decent credit card rates.
Let’s take a closer look at how medical debt has affected the US with these surprising findings:
- According to the Consumer Financial Protection Bureau, the average age of people filing for bankruptcy due to unpaid medical bills is typically reported as mid-to late 40s.
- According to the Consumer Financial Protection Bureau, around 46.3% of people who have filed for bankruptcy due to unpaid medical bills are married.
- For those who applied for medical bankruptcy, the average household income is around $2,600 per month, according to a report published in 2009 by the American Journal of Medicine.
- Out of all the households who have applied for medical bankruptcy, the average debt was around $44,622.
- On average, the unpaid medical debt recorded in credit reports is around US$ 500.
- Out of the total consumers with debt, around 58% have debt to be collected for medical bills only.
- An astonishing 54% of consumers with unpaid medical bills have these as the only unpaid bills.
This is the stark reality of unpaid medical bills in the US. This problem is increasing steadily every year, and there is a vital need to stem it lest the situation get out of hand.
Effects of Unpaid Medical Bills
Medical debt and the worry of accumulating one has resulted in severe problems for Americans.
The biggest effect of unpaid medical bills is that they compel patients to avoid treatment for disorders and ailments.
The problem is so severe that a survey found nearly 1 in 3 Americans say that they have avoided getting medical care because they were worried about the cost and the resultant debt.
Unlike other industries, where consumers can turn to competitors if unsatisfied with a service, this is not easy in the medical field.
A survey found that around 69% of adult Americans stated that it was complicated or tough to switch healthcare providers, especially when they were in medical debt.
This is certainly a great cause for concern for the state and federal governments.
Conclusion
Unfortunately, unpaid medical bills have become increasingly common.
To avoid getting into medical debt yourself, it is highly recommended to search for alternatives, such as grants and funds for medical treatment and prescription drugs that are provided by numerous state, federal and private organizations
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