Millions of Americans have medical debts and want the federal government to introduce a forgiveness scheme, like the one for student loans—but is this likely, and would a one-off program solve the root problem?
Loan forgiveness has become a hot topic in recent years following the Biden administration’s en masse policies to eradicate education bills for borrowers of all ages and incomes. Student debt has been wiped for many people—despite some political hurdles along the way—and more than half of all Americans want to see action on medical debts rather than student debts.
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Arizona Announces 1 Million People Will Have Medical Debt Cleared
By Aliss Higham
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Millions of Americans have medical debts and want the federal government to introduce a forgiveness scheme, like the one for student loans—but is this likely, and would a one-off program solve the root problem?
Loan forgiveness has become a hot topic in recent years following the Biden administration’s en masse policies to eradicate education bills for borrowers of all ages and incomes. Student debt has been wiped for many people—despite some political hurdles along the way—and more than half of all Americans want to see action on medical debts rather than student debts.
Read more: What Is a Health Savings Account?
It’s no surprise that medical debts can cause significant financial strain, particularly when the U.S. has the most expensive health care system for consumers in the world. According to Undue Medical Debt, a national nonprofit that buys medical debts and writes them off, 60 percent of bankruptcies throughout the country have health care debt as a root cause.
Analysis by KFF Health has found that around six percent of U.S. adults—14 million people—in the U.S. owe more than $1,000 in medical debts. One percent of U.S. adults are indebted by more than $10,000—some 3 million people.
What’s more, some 15 million Americans have medical bills on their credit report, according to research conducted by the Consumer Financial Protection Bureau (CFPB), which can have a significant impact on credit scores, leading to problems with buying homes, vehicles and other key purchases.
Read more at Newsweek.com
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