More than half of individuals with medical debt have been contacted by a collection agency, compared with 8% of those who do not have medical debt, according to data released this week by the Kaiser Family Foundation. The data was part of a survey conducted of consumers back in 2021. Similarly, more than two-thirds of consumers with medical debt do not have a “rainy day” fund, compared with only 37% of consumers without medical debt.
Consumers with medical debt are also more likely to carry a credit card balance every month, to have used a pawn shop or taken out a payday loan, and have overdrawn their checking accounts, according to the data.
More Numbers: Reinforcing what many other studies and surveys have demonstrated, individuals with medical debts are less likely to go to a doctor or be treated when injured or sick. Nearly half of those surveyed reported having a medical issue in the preceding 12 months but chose not to get it treated — because of the cost. That compares with 11% of those without debt who chose not to have a medical issue treated.
What it Means: All of this information is helpful when communicating with consumers about unpaid debts. This data can help paint a picture of the person on the other end of the phone and illustrate what he or she is going through, and what resources may be available to repay a debt.
The Last Word: “Medical debt is often just one component of an individual’s overall financial situation, and it frequently compounds other forms of financial instability they may be experiencing,” the analysis concluded. “This heightened financial instability can result in individuals forgoing necessary medical care due to concerns about the affordability of services.”
