5 min read
Medical debt is a fact of life for millions of Americans, and the numbers are staggering.
Roughly 20 million adults owe at least $250, while the total medical debt owed nationwide exceeds $220 billion. Fourteen million adults owe more than $1,000, and about three million carry medical debt over $10,000 [1].
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Surveys show that nearly 79 million Americans have struggled with medical billing problems or are paying down medical debt [2]. And errors are common, and disputes happen frequently: Medical debt in collections is challenged almost three times more often than credit card debt [3].
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These disputes can start with something as small as a clerical error.
In one mother’s case, her 9‑year‑old son ended up with a $3,000 bill after a specialist’s office completed testing and her insurance denied the claim. She qualified for financial assistance that would have reduced the bill to $450, but the application required the responsible party to be over 18. She tried getting herself listed as the responsible party, but three months later the debt was sold to a collection agency, still in her son’s name.
This kind of situation happens more often than many realize. Federal law under the Fair Debt Collection Practices Act (FDCPA) prohibits collectors from pursuing debts without proper verification, misrepresenting amounts owed or attempting to collect for services not actually provided.
The Consumer Financial Protection Bureau has also warned against double‑billing and inflated charges in medical debt collection. Collectors are required to have documentation that supports the debt and to stop collection efforts if the consumer disputes it in writing within 30 days.
Yet, many people find themselves facing collection efforts even when the bill is clearly wrong. Sometimes providers submit outdated or incomplete records to collectors. In other cases, debt buyers try to collect the full face amount even if the underlying bill should have been adjusted for financial assistance or insurance coverage. Some consumers have reported being pursued for services they never received, bills already paid or debts linked to the wrong person entirely.
