Which States Carry the Highest Medical Debt in America?

Medical bills are a leading source of financial stress for millions of Americans. Which states carry the highest medical debt in America?

In 2025, states like West Virginia, South Carolina, and Mississippi report the highest average medical debt levels, with balances ranging from $1,500 to $2,100 per consumer.

At DebtBusters, we help individuals burdened by healthcare costs find relief solutions tailored to their situation. Below, we break down the latest national statistics, state-by-state rankings, key demographic insights, and strategies for dealing with overwhelming medical debt.

National Overview of Medical Debt Trends (2025)

Medical debt remains one of the most common forms of unpaid debt in the United States. According to the latest Kaiser Family Foundation (KFF) Health Care Debt Survey (2024–2025 update):

• 41% of American adults carry some form of medical or dental debt.
• 20% of households owe more than $1,000 in unpaid healthcare bills.
• The average medical debt among indebted consumers is approximately $1,430 in 2025.

Key Drivers Behind Rising Medical Debt:

• Insurance Gaps: High deductibles and copays leave consumers exposed.
• Out-of-Network Charges: Surprise billing still affects insured patients.
• Economic Instability: Post-pandemic inflationary pressures compound costs.
• Chronic Health Conditions: Long-term illnesses drive cumulative bills.
• Limited Access to Affordable Care: Particularly in rural and Southern regions.

National Medical Debt Statistics (2025):

The U.S. consumer debt landscape in 2025 reveals that even insured individuals are not immune to crushing healthcare expenses.

State-by-State Breakdown of Medical Debt in 2025

Visualizing Average Medical Debt by State in 2025

Medical debt affects Americans differently depending on where they live. To better understand how healthcare-related financial burdens vary across the country, the heat map below shows the average medical debt per state in 2025.

Darker shades represent states with higher medical debt, while lighter shades indicate lower averages. These differences often correlate with regional trends in insurance coverage, healthcare access, and median income levels.

Demographic Insights: Who Struggles Most with Medical Debt?

Beyond geography, certain groups face disproportionate risks of falling into medical debt:

Age:

• Millennials and Gen X carry the most unpaid medical balances.
• Seniors 65+ typically have less debt but face higher overall costs.

Income:

• Households earning under $50,000/year are three times more likely to have unpaid medical bills than those earning over $100,000/year.

Race/Ethnicity:

• Black and Hispanic Americans are statistically more likely to carry medical debt, according to CFPB reports.

Insurance Status:

• Uninsured adults are 5x more likely to owe large medical balances compared to insured counterparts.

How Medical Debt Impacts Credit and Bankruptcy Risk

Medical debt doesn’t just threaten wallets — it can damage credit scores and lead to financial ruin.

Credit Reporting Changes (2023–2024 Update):

• Paid medical debts under $500 are no longer included in consumer credit reports.
• Larger, unpaid debts still significantly lower FICO scores.

Bankruptcy Trends:

• Medical bills contribute to 58% of personal bankruptcy filings in the U.S., according to a 2025 Consumer Financial Protection Bureau study.
• High-deductible health plans correlate strongly with bankruptcy risk among middle-class families.

Medical Debt and Bankruptcy Filings: A 10-Year Comparison

Understanding the long-term relationship between rising healthcare costs and consumer financial distress is essential. The chart below tracks average medical debt and annual U.S. bankruptcy filings from 2015 to 2025, offering a decade-long perspective on how unpaid medical bills can compound into legal and financial consequences.

While medical debt has steadily increased, bankruptcy filings have declined—a trend that may reflect delayed filings, increased debt settlement efforts, or shifts in credit reporting rules. This visual helps highlight how medical debt burdens are growing even as fewer consumers take formal legal action.

Solutions for Managing and Reducing Medical Debt

If you are struggling with overwhelming medical debt, early intervention is critical. Here’s how to take action:

• Request an itemized bill to catch billing errors (common and costly).
• Negotiate with hospitals for financial assistance or charity care programs.
• Set up a payment plan — most providers prefer installment payments over collections.
• Hire a medical billing advocate for large, complicated bills.
• Work with a professional debt settlement company like DebtBusters to negotiate and reduce what you owe.

Pro Tip: Medical debts can often be settled for 25%–75% less than the original balance if handled correctly.

Break Free from Medical Debt with DebtBusters

Medical bills shouldn’t define your financial future.
At DebtBusters, we specialize in helping individuals just like you reduce overwhelming healthcare debt, protect your credit, and regain peace of mind.

Our expert team can help you:

• Negotiate lower balances on outstanding medical accounts
• Protect yourself from aggressive collections
• Create a clear, manageable path toward debt freedom

Start your recovery today — call (866) 223-4395 for a free consultation, or visit DebtBusters.com.

You deserve relief. Let DebtBusters help you get there.