More than one-third of individuals living in California are carrying some amount of medical debt, and one-fifth of those who do owe at least $5,000, according to a report released last week by the California Health Care Foundation.
Demographically, Californians with lower incomes were more likely than those with higher incomes to have medical debt. Fifty-two percent of individuals with lower incomes — making less than 200% of the federal poverty level ($27,750 for a family of four) — have medical debts to pay, compared with 30% of those earning above 200% of the poverty line.
When asked what type of debt they have, 20% owe money to a bank or collection agency, 19% used their credit cards to pay for medical visits or procedures and are still paying those balances off, 19% are paying a medical or dental provider over time, 17% have medical or dental bills that they are unable to pay, and 12% owe a family member or friend.
Overall, 19% of those with healthcare debt owe at least $5,000. Nineteen percent owe less than $500, another 19% owe between $500 and $1,000, 16% owe between $1,000 and $2,500, and 16% owe between $2,500 and $5,000.
“The high cost of care is now directly impacting the health and financial security of millions of California families,” says Kristof Stremikis, director of Market Analysis and Insight at the California Health Care Foundation, in a statement. “Californians are also very concerned about a variety of other health issues — including homelessness and mental health, preparing public health departments for the next emergency, and ensuring every community has enough health care workers. But in poll after poll, what we see most consistently is that Californians want and need the rising cost of care to be contained.”
As is the case in many situations where healthcare debt is involved, one of the most common consequences is that people opt to delay or skip seeing a doctor. Fifty-two percent of Californians skipped or delayed a visit to the doctor last year because of the cost associated with the visit, and of those who skipped 50% saw their conditions worsen.
