How Does Medical Debt Affect U.S. Families?

More than one in four adults in the United States (27%) reported that they or a member of their family had medical debt in December 2025, including 26% of adults with health insurance, underscoring that access to coverage does not guarantee that families can afford needed healthcare.

The Issue

Rising healthcare costs are placing growing financial pressure on individuals and families, and many are taking on medical debt as a result. Previous research found that nearly half of working age U.S. adults had difficulty affording healthcare in 2025.

Key Findings

• More than one in four adults in the United States (27%) reported that they or a member of their family had medical debt in December 2025, including 26% of adults with health insurance.
• More than one in three Black adults (38%) and Hispanic adults (35%) reported holding medical debt, which researchers say reflects ongoing health and economic inequities.
• More than half of adults who reported having medical debt (54%) said their families owed at least $1,000, and 16% owed $5,000 or more.  
• More than one-third of adults (35%) said they or a family member had been contacted by a collection agency about unpaid medical bills in the past year

Conclusion

Researchers say these findings show that medical debt challenges are not limited to uninsured people and are also common among those with insurance. This issue could worsen in coming years, as healthcare costs are expected to continue rising and many people are expected to lose health coverage due to federal Medicaid and Marketplace policy changes.

About the Author/Grantee

The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health, Income, and Benefits Policy Division for more information specific to its staff and its recent research.