Indiana lawmakers will examine the impact of medical debt during this year’s interim study session, marking a significant move as medical debt continues to burden families across the state and nation. The decision to include medical debt as a focus comes amid data showing that an estimated 15 million Americans have medical debt on their credit reports as of 2024.
In Indiana, the problem is particularly severe, with the state ranking 11th highest nationwide for the share of residents with medical debt and an estimated $2.2 billion in collections. Studies have shown that medical debt makes it harder for individuals to afford basic needs, seek health care, and access credit.
The Indiana Community Action Poverty Institute has highlighted that medical debt imposes financial hardship on Hoosiers, preventing many from caring for themselves and their families. Recent research conducted by the Institute found that mothers from various socioeconomic backgrounds struggled with medical debt, with some foregoing necessary postpartum care to afford essentials for their children.
The Institute, along with partners such as the United Way of Central Indiana, has supported legislation to address medical debt over the past two years. Advocates note that medical debt remains a significant obstacle to individual and family economic security, particularly for those in or near poverty, and hope the interim study will produce actionable solutions for lawmakers to consider in 2026.
Organizations like The Leukemia and Lymphoma Society have also welcomed the decision to study medical debt, emphasizing that it is unique compared to other forms of debt because no one chooses to become sick. Their polling has found that more than four in ten patients delayed medical care due to concerns about debt, a reality they believe underscores the urgent need for policy solutions.
Reports and further information about the scale and impact of medical debt in Indiana are available through the Indiana Community Action Poverty Institute’s medical debt page.
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