Many Older Americans Report Medical Debt in 2025
A new Urban Institute report shows that 17.6 percent of adults aged 65 and older faced medical debt in December 2025.
Updated on Oct. 16, 2026 in Senior Health
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Do you feel confident that Medicare coverage effectively protects your personal finances from medical debt?
As of December 2025, 17.6 percent of U.S. adults aged 65 and older reported holding medical debt. This figure highlights persistent financial challenges for seniors navigating healthcare costs within the American insurance landscape.
Why it matters
Traditional Medicare lacks an annual out-of-pocket spending cap for Parts A and B, leaving many seniors exposed to significant financial risk. Furthermore, the program excludes essential services like routine dental and long-term custodial care.
A survey of more than 10,000 adults found that 53.8 percent of those with medical debt owe at least $1,000, while 15.5 percent owe $5,000 or more. Additionally, 21.7 percent of these individuals reported damage to their credit scores.
The players
The Urban Institute
This is a nonpartisan research organization based in Washington, D.C., that provides data and evidence to help people and public officials understand and improve social and economic policy.
Medicare
This is a federal health insurance program in the United States primarily for people aged 65 and older, as well as younger people with specific disabilities or conditions.
The details
The data indicates that 35.2 percent of adults with medical debt have been contacted by collection agencies regarding their outstanding balances. With Medicare households spending 14 percent of their income on healthcare in 2024, many beneficiaries face high financial burdens without supplemental coverage.
Timeline
In 2023, 3.5 million traditional Medicare beneficiaries lacked supplemental insurance.
In 2024, Medicare households spent 14 percent of their income on healthcare.
As of December 2025, 17.6 percent of older adults held medical debt.
For 2026, the standard Part B premium is set at $203.
The 2026 Medicare annual open enrollment period runs from October 15, 2026, to December 7, 2026.
Health Landscape
The findings underscore the limitations inherent in Medicare Parts A and B coverage standards regarding out-of-pocket expenses. This situation reflects a broader challenge in the American healthcare system, where seniors must manage significant financial liability despite federal coverage.
Seniors should carefully review their supplemental insurance options, as traditional Medicare coverage does not include a cap on out-of-pocket medical spending. Understanding these gaps can help individuals plan for costs like the $203 monthly Part B premium and the $1,736 hospital deductible.
The takeaway
Proactive management of healthcare coverage and supplemental insurance is vital for seniors to avoid the high costs often associated with traditional Medicare. Individuals are encouraged to prioritize reviewing their policy details annually to better anticipate and mitigate out-of-pocket expenses.
What happens next
Medicare beneficiaries have until December 7, 2026, to finalize their coverage selections for the upcoming year.
Further reading
For additional context on programs designed to support older populations, visit the Senior Health section.
Source note: This article includes information reported by International Business Times.
Live Poll
Do you feel confident that Medicare coverage effectively protects your personal finances from medical debt?
