This Is How Much Medical Debt the Average Person Has in Each State
Written by
Rafaela Stalbalk Klose
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Medical debt is a major financial burden for millions of Americans, with amounts varying widely from state to state. Factors such as healthcare costs, insurance coverage, state policies, health status and income all shape the financial impact of medical expenses, leading some residents to carry much higher debt than others.
In the U.S., where individuals often shoulder a significant portion of healthcare costs, these bills can pile up quickly, causing long-term financial strain. According to the Urban Institute’s Debt in America: An Interactive Map, average medical debt differs substantially across states.
Here is a breakdown of average medical debt by state, including why there are such big differences.
Why Medical Debt Varies by State
The Urban Institute’s Debt in America map highlights why medical debt is worse in some states than others. First, healthcare costs vary greatly by region, so people in states with higher prices for medical services often end up deeper in debt. Insurance coverage also plays a big role — both availability and quality change depending on the state, meaning out-of-pocket costs can hit some people much harder.
Then there are state policies like Medicaid expansion, which can make a real difference. States that expand Medicaid generally see less medical debt because more people can afford care. All these factors together mean that, depending on where you live, your medical debt could look very different from someone else’s in another state.
How Location Impacts Finances
In the U.S., medical debt is a widespread issue, hitting some areas harder than others due to differences in healthcare costs, insurance access and state policies. The Urban Institute’s Debt in America map shows that in states with high healthcare costs and limited insurance options, medical debt skyrockets, dragging down family finances and forcing tough choices between essentials and medical bills.
For many households barely making ends meet, a surprise medical expense can push them deep into debt, which isn’t just a short-term hit — it negatively impacts credit scores, limits loan access and disrupts overall financial stability.
Meanwhile, states with Medicaid expansion and debt protection laws see lower levels of medical debt, as residents have better access to affordable care and a chance to avoid crushing debt. Ultimately, a zip code can make or break how manageable medical debt is, highlighting just how much local policies impact financial security for millions of Americans.
Which States Have the Most Medical Debt?
Certain states stand out for their particularly high medical debt averages. These states tend to have higher healthcare costs or larger populations without access to affordable healthcare options. Some factors that contribute to these elevated debt levels include higher hospital fees, fewer state-funded health programs and lower insurance enrollment rates. Additionally, people living in rural areas and in the South are more likely to have medical debtÂ
A February 2024 report from KFF, a top U.S. health policy organization, reveals that Americans owe a massive $220 billion in medical debt. On average, 8.6% of U.S. adults carry medical debt, but the rates vary by state. Hawaii (2.3%), California (3.9%) and Oregon (5.2%) have some of the lowest rates, likely due to better coverage or lower costs. At the other end, South Dakota tops the list with 17.7% of adults — around 100,000 people — in medical debt. Mississippi (15.2%), North Carolina (13.4%), West Virginia (13.3%) and Georgia (12.7%) follow closely, showing how tough healthcare bills hit in certain states.
Navigating medical debt can be overwhelming, but relief options are available. Many healthcare providers offer payment plans or income-based assistance and Medicaid or state programs may help cover past bills for eligible individuals. Nonprofits like RIP Medical Debt, and the Patient Advocate Foundation provide financial support to reduce expenses.
For substantial debt, medical credit counselors can assist in negotiating payments and some hospitals offer forgiveness programs to ease the burden.
Additional help may be available through free or low-cost medical care, government health insurance programs, or medical debt management plans.
More From GOBankingRates
