Medical debt is a already a challenge for tens of millions of Americans. The Republicans’ reconciliation bills in the House and Senate would only exacerbate that challenge, four Senate Democrats wrote in a letter to the Senate and House majority leaders, John Thune and Mike Johnson. We could know before July 4 whether they vote for driving up medical debt.
As I have written, if the Republicans’ proposed cuts are passed into law, 16 million Americans would lose health insurance coverage, including 1.4 million older adults and people with disabilities. Scores of rural and inner city hospitals will be forced to close or close critical units, tens of thousands of people will lose jobs, and health care costs will rise for everyone.
Senate Democrats are now reminding Republicans that mounting medical debt is yet another grave consequence of their proposed cuts. As it is, 100 million Americans are burdened by more than $278 billion in medical debt. They are sometimes forced forego care or other basic necessities. Unpaid debt, or uncompensated care, also can make it difficult for hospitals and physicians to do their jobs.
A recent Gallup survey finds that 31 million Americans had to borrow almost $74 billion between 2023 and 2024 to pay for health care. Nearly six in ten of them think they would face medical debt if they develop a health condition or injury. The Republicans’ proposal to cut Medicaid by about $1 trillion and to end subsidies in the state health insurance exchanges would only exacerbate the plight of Americans.
An analysis by the think tank, Third Way finds that the Republicans’ proposed reconciliation bill would:
- Push 5.4 million more people into medical debt, including 2.2 million people on Medicaid and 3.2 million people with coverage through the ACA Marketplaces.
- Increase the total amount of medical debt owed across the nation by $50 billion—a 15% jump.
Medical debt is hard enough on its own. The ripple effects are worse. People with medical debt struggle to get good credit and secure housing. They have poor credit scores, lose their homes to foreclosure or get evicted.
Call your members of Congress and Senators, let them know what you think about these proposed cuts. Your voices matter.
Here’s more from Just Care:
- House reconciliation bill would push millions off Medicaid
- Republican lawmakers undermining citizen-led policy initiatives
- Republican Josh Hawley argues against Medicaid cuts
- Medicare Advantage doesn’t work for rural Americans
- Republican Medicaid reform proposals devastating
