Medical debt has topped $2 billion statewide, with one out of five Hoosiers with medical debt in collections. Because the amount does not take into account payment plans, credit cards and other sources, the true number is likely higher. Photo from Vitaly Gariev, Unsplash.

News Release

INDIANAPOLIS — A 2022 report from the Indiana Community Action Poverty Institute states about one in five Indiana residents has medical debt currently in collections, totaling more than $2 billion statewide. The figure places Indiana 11th in the nation for the share of residents struggling with unpaid medical bills. A separate analysis from health policy group KFF found that roughly 40% of U.S. adults have medical debt in some form.

State lawmakers are studying potential policy solutions to better protect consumers. A legislative study committee is expected to release recommendations on medical debt reform before the end of the year.

The institute is working to educate Hoosiers on how to manage that debt through community outreach and informational tools. A recent effort focused on La Porte County, where residents received guidance on negotiating lower bills, setting up payment plans and finding financial assistance.

Educational materials developed by the institute outline consumer rights under state and federal law, including the right to dispute bills and request good faith estimates before receiving care.

Policy analyst Lauren Murfee said rising healthcare costs have made it harder for residents to afford basic necessities as debt piles up.

Murfee noted that the $2 billion estimate likely understates the true burden, since it includes only debts in active collections and not those on payment plans, credit cards or other arrangements.