Medical Bills and Debt

Medical debt is one of the most common forms of financial hardship in the United States. In Connecticut, 1 in 3 people have financial burdens due to medical bills — even people who have insurance.[i] High costs and a confusing healthcare system can leave patients with bills they did not expect and cannot afford. Anyone can face medical debt after an accident, illness, or emergency. It often comes without warning and can happen to people who did everything “right.”



What is medical debt

Medical debt is money people owe for medical or dental care that they can’t afford to pay. This can include unpaid bills from hospital care, doctor visits, or dental work. It can also include debt from payment plans, credit cards, bank loans, or money borrowed from family or friends to pay for healthcare. More than 100 million people in the U.S. have faced healthcare debt in the last five years,[ii] with more than $220 billion owed nationwide.[iii]

Most medical debt starts with a surprise — an accident, a sudden illness, or a hospital stay. For people with chronic conditions like cancer or diabetes, medical debt can be ongoing. Over time, unpaid bills can pile up and make it hard to pay for essential expenses like housing, food, and utilities. Medical debt affects health, finances, and peace of mind. Here's what often happens in the cycle of medical debt.


The Cycle of Medical Debt *

  1. Medical visit- James is hospitalized due to complication from diabetes
  2. Medical Bill Received- His insurance only covers a small portion of the cost, leaving him with a bill he cannot pay.
  3. Unpaid medical bill- he applies for financial assistance and is denied. He cannot afford the bill and puts it in drawer, avoiding it.
  4. Medical debt sold- the debt is sold to an outside collector who threatens legal action if he does not make payments.
  5. James tries to stretch one month of insulin across two  so he can make payments on his hospital bills. As a result, his diabetes worsens.

*Note that the general path remains the same for people without insurance. Additionally—while common—this is not a universal experience.  

The Cycle of Medical Debt

  • A national poll from 2025 found more than one-third of respondents (35%) currently owe money or have debt due to medical or dental expenses — with more than half saying they worry about going into debt when using medical services.[iv]
  • Medical debt is common. Most of the bills people struggle to pay (66%) stem from a one-time or short-term event like a car accident or hospital stay.[v]
  • Medical debt is not only a financial burden. It can also cause people to delay or skip needed healthcare. In Connecticut, 61% of residents report that they, or a family member, skipped or delayed medical care due to cost.[vi]

Quick Tips on Medical Debt

Medical Debt Rules in CT

More Help with Medical Bills

Additional Support and Resources


[i] Connecticut Survey Respondents Receive Unexpected Medical Bills and Incur Medical Debt; Express Bipartisan Support for Government Action – Healthcare Value Hub