Medical Debt

Medical debt arises when free or reduced-cost care is not accessible to offset patients’ unaffordable out-of-pocket health care costs. Due in part to a weakened economy, the decline in employer-based insurance coverage, and the paring down of health insurance benefits, medical debt has crept into the middle class consciousness by impacting the growing number of Americans who are underinsured. In 2007, nearly two-thirds of American adults reported they were struggling with medical bills or avoiding care due to the cost of treatment.  In these instances, diagnosis of serious illness or disease occurs at later stages when treatment is less likely to succeed.  Even when individuals break through the barriers and get free care, there is evidence they receive poorer quality care.  In many states, medical debt and provider collection efforts have been linked to ruined credit ratings; wage garnishment, bank account seizures, and liens on private property, including patients’ homes; bankruptcy; and home foreclosure. Community Catalyst works with national, state and local advocates to build awareness of the institutional and systemic problems that lead to medical debt and to help consumers, health care institutions, and policymakers work together to address these issues in their communities.