NEW YORK CITY, NY / ACCESS Newswire / January 30, 2025 / The financial strain of medical debt has long been a silent burden for millions of Americans, often arising from emergencies, hospital stays, or life-altering diagnoses. Recent policy changes, including the rule proposed by the Consumer Financial Protection Bureau to remove certain medical debts from consumers' credit reports, have brought this issue to the forefront. These changes underscore the profound impact medical debt has on individuals and families - and the broader need to support those who are struggling.
The Scope of the Problem
Medical debt is a widespread challenge in the United States, affecting millions of individuals and families. According to the Kaiser Family Foundation, over 100 million adults are dealing with medical debt, and the strain of medical debt is particularly acute for families. Even with insurance, out-of-pocket costs can add up quickly, making it difficult for many to manage these expenses.
Unfortunately, a significant portion of Americans lack the savings needed to cover unexpected medical expenses. According to a 2022 Federal Reserve report and the Bipartisan Policy Center, more than one-third of U.S. adults wouldn't be able to cover a $400 emergency expense without borrowing money or selling possessions.
"At National Debt Relief," explains CEO Alex Kleyner, "we see how medical costs, combined with other financial pressures, create a snowball effect that can be incredibly hard to recover from without support."
The Hidden Costs of Medical Debt
The impact of medical debt goes beyond the financial burden, deeply affecting individuals' emotional and physical well-being. Many people with medical debt delay essential care due to the high costs and are forced to cut back on necessities like food and housing. This financial strain often leads to heightened anxiety, stress, and even depression.
"The reality is that medical debt isn't just about money; it's about the challenges it creates for individuals and families," says Alex Kleyner of National Debt Relief. "It's important to acknowledge these hardships and focus on solutions that provide relief."
The emotional toll is particularly severe when debts are unexpected. Consumer Reports found that a significant portion of people were unaware of their medical debt until it escalated to collections. The complex and opaque nature of medical billing only adds to the frustration many experience. The proposed changes to how credit agencies report medical debt highlight a growing understanding of this reality.
"Navigating the complexities of medical billing and insurance can be daunting, often leaving patients feeling overwhelmed" Alex Kleyner explains. "At National Debt Relief, our experienced negotiators deal with medical bills every day to find solutions that our clients can manage."
Building Awareness
Consumer education remains essential to addressing the broader issue of medical debt. For many, the burden of medical bills can linger, leading to long-term consequences such as difficulty qualifying for housing or some types of employment. Despite the potential impacts, many Americans are unaware of their rights when it comes to billing disputes or available programs for financial assistance.
For example, nonprofit hospitals are required to offer financial aid to eligible patients, yet a study published by the Urban Institute found that many who qualify for financial assistance do not receive it. This can mean overpaying for services or going into debt to cover treatment.
"Empowering consumers with knowledge is just one way to support them as they work to regain financial stability," says Alex Kleyner. "Every individual burdened by medical debt has a story, and with clear guidance and access to help when it's needed, these stories can be turned into ones of hope and resilience."
CONTACT:
Andrew Mitchell
media@cambridgeglobal.com
SOURCE: National Debt Relief
View the original press release on ACCESS Newswire
