Credit Report Crisis: $49 Billion in Medical Debt

Despite policy changes, 15 million Americans have medical debt on credit reports

A consumer advocacy group is speaking out in light of a new report showing that 15 million Americans have a total of $49 billion in medical debt in collections showing up on credit reports.

The National Consumer Law Center said in a media release the new report confirms that medical debt hits vulnerable populations the hardest.

“The CFPB’s report confirms what we’ve always known,” stated Berneta Haynes, senior attorney at the National Consumer Law Center and author of The Racial Health and Wealth Gap: Impact of Medical Debt on Black Families. “The burden of medical debt disproportionately falls on Black and Latino families.”

The organization said that keeping medical debt on credit reports harms older adults, who are more likely to have erroneous debt reported.

Anna Anderson, staff attorney at NCLC, said, "Older adults are at high risk of receiving inaccurate medical bills that land on their credit reports because they are more likely to live with chronic conditions, have multiple insurance plans, and experience difficulty navigating complex billing systems to correct inaccurate bills."

NCLC noted some progress has been made, but more can and should be done.

In March 2022, Equifax, Experian, and TransUnion announced they would no longer report certain medical bills, including paid medical debt and bills under $500.

According to NCLC:

Consumers living in the South continue to have the most medical bills in collections and for the largest dollar amounts.

Photo byClay BanksonUnsplash