A new study by Whitley Law Firm has found that Iowa residents have experienced the sharpest increase in medical debt in the nation, highlighting the growing financial pressures families face when paying for healthcare.
Between 2020 and 2023, the percentage of Iowa residents with medical debt rose by 54.97%, from 5.93% to 9.20%. This represents the largest rise recorded across all 50 states.
States With the Biggest Increases in Medical Debt
- Iowa: 54.97% increase, from 5.93% to 9.20%.
- Hawaii: 34.87% increase, from 3.00% to 4.05%.
- Nebraska: 32.91% increase, from 8.51% to 11.30%.
- Alaska: 32.22% increase, from 4.90% to 6.48%.
- Maine: 26.75% increase, from 8.04% to 10.19%.
Nebraska, in particular, now has one of the highest overall medical debt rates in the country.
States That Reduced Medical Debt
While Iowa and others saw steep increases, some states achieved dramatic improvements:
- Delaware: 80.29% decrease, from 11.03% to 2.17%.
- Kansas: 42.66% decrease, from 10.38% to 5.95%.
- Kentucky: 38.53% decrease, from 11.86% to 7.29%.
- Wyoming: 35.24% decrease, from 13.73% to 8.89%.
- Alabama: 34.12% decrease, from 10.43% to 6.87%.
These reductions suggest that targeted policy reforms and consumer protections can significantly reduce the burden of medical debt.
The Human Impact of Medical Debt
A spokesperson from Whitley Law Firm commented on the findings:
“This study shows an alarming rise in medical debt across several states, with Iowa’s nearly 55% increase being particularly concerning. This growing burden affects families’ financial stability and can force difficult choices between healthcare and other essential needs.
“Medical debt is unique because it often stems from unavoidable healthcare costs rather than discretionary spending. Emergencies, surgeries, or chronic conditions can overwhelm a family’s finances even when they have insurance coverage.
“At the same time, the progress seen in states like Delaware demonstrates that strong policy measures and consumer protections can help ease this strain. By learning from these successes, states can better protect their residents from falling into debt after necessary medical care.”
Methodology
The study analyzed Survey of Income and Program Participation (SIPP) data from the U.S. Census Bureau on people under medical debt between 2020 and 2023. It identified the states with the most significant increases and decreases in the percentage of residents struggling with medical debt.
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