Summary
Medical debt in the United States is expected to rise significantly in 2026. This increase is due to expected higher healthcare and insurance costs and changes to Medicaid and Affordable Care Act (ACA) policies by the Trump administration.
Key Facts
- Medical debt is the money owed to places like hospitals, and it affects people with or without health insurance.
- In 2021, 15% of households reportedly owed medical debt according to a Census Bureau study.
- A broader study by KFF found that 41% of adults had healthcare-related debt in 2022.
- Medicaid is facing $1 trillion in cuts, which could result in millions losing their insurance coverage.
- Enhanced tax credits for purchasing ACA plans will expire, possibly increasing plan costs by around 20%.
- Small business employees, retirees, and students are likely to be hit hardest by rising insurance costs.
- Employer health plan costs are predicted to rise by over 6% next year.
- Rising healthcare costs are also driven by inflation and increased demand for certain drugs.
