Medical debt tops $2 billion for Hoosiers. Experts say it's likely higher

Roughly one in five Indiana residents has medical debt that is currently in collections, according to a 2022 report from the Indiana Community Action Poverty Institute. 

Now, the group is trying to educate Hoosiers on how to manage a debt that tops $2 billion statewide. 

That amount puts Indiana at 11th in the nation for the number of residents with medical debt in collections. 

The Indiana Community Action Poverty Institute’s workcentered around residents of La Porte County. It included efforts to educate residents on how to negotiate lower bills, tools for setting up payment plans, and places to find assistance. 

The educational materials developed by the institute included a brochure that outlines the basic rights Hoosiers have around medical billing - including the ability to dispute bills or ask for good faith estimates ahead of receiving care. 

Lauren Murfee is a policy analyst for the institute. She said conversations with residents revealed that rising costs are a growing problem.

"Basic things that are really needed people are struggling with because of the burden of their medical debt,” she said. 

The size of Indiana’s medical debt is likely larger than Murfee and the institute have reported. She noted that their analysis has only looked at debt that is currently in collections.

"That doesn't include ones that aren't payment plans, ones that were paid off credit cards, other kind of sources,” she said. “So that number likely is higher.”

An analysis by the health policy institute KFF has suggested that as many as 40% of U.S. adults have some kind of medical debt.

Indiana has begun exploring possible legislation to protect residents or manage medical debt. A study committee could possibly release recommendations before the end of the year. 

Contact Health Reporter Benjamin Thorp at bthorp@wfyi.org