Over Quarter of U.S. Adults Held Medical Debt in 2025

New survey data shows that millions of Americans struggled with unpaid healthcare bills throughout 2025.

Updated on Oct. 6, 2026 in Healthcare

Bold flat-color editorial illustration depicting a heavy brass weight resting on a minimalist clinical bedframe, symbolizing medical financial burden. — A 2025 Urban Institute survey reveals that 27% of U.S. adults carry medical debt, highlighting a persistent financial burden for millions of insured Americans. AI Illustration. Upload story photo >

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Is the burden of medical debt for your household getting worse compared to previous years?

In 2025, 27% of U.S. adults reported holding medical debt, with a significant portion of these individuals facing collection attempts. The findings from the Urban Institute indicate that even those with health insurance are frequently burdened by these financial obligations.

Why it matters

Medical debt remains a pervasive financial challenge that disproportionately impacts minority communities and those requiring hospital or specialist care. As federal policies shift and employers move more costs to employees, millions face increased risk of losing critical health coverage.

Among those with medical debt, 54% owed at least $1,000, while 16% faced balances of $5,000 or more. Furthermore, 35% of those with debt were contacted by a collection agency during the year.

The players

Urban Institute

This is a nonpartisan research organization that conducts economic and social policy studies in the United States.

The details

Data shows that 52% of those with medical debt owed money for hospital services, while 42% owed for specialist care. The survey also highlighted demographic disparities, with 38% of Black adults and 35% of Hispanic adults reporting medical debt compared to 18% of those 65 and older.

The Urban Institute conducted the study throughout 2025.
Survey data for the medical debt analysis was collected in December 2025.

Market Landscape

The prevalence of medical debt illustrates the limitations of coverage mandates established under the Patient Protection and Affordable Care Act. This creates a volatile landscape where insurance does not guarantee protection from significant financial liability.

Even insured individuals remain at risk, as 26% of those with health insurance reported carrying medical debt. Households should prepare for potentially higher out-of-pocket costs as employers shift more of the financial burden to workers.

The takeaway

Medical debt can rapidly accumulate even for those with active health insurance plans and steady employment. Proactive budgeting for potential out-of-network or hospital costs is essential to mitigating the risk of credit-damaging collection attempts.