Medical Debt in Indiana

"You realize you’ve had this American Dream, and it just gets snatched away from you so quickly. You are in poverty before you even realize it’s coming.” 

We all want to live in a state in which Hoosiers can receive health care without being overwhelmed by the cost. The unfortunate reality is that far too many Hoosiers struggle with medical bills and medical debt.   

• Nationwide, as many as 40 percent of adults are in debt because of medical or dental care (Kaiser Family Foundation, 2022). 

• In Indiana, nearly one in five Hoosiers has medical debt in collections, totaling $2.2 billion (Consumer Financial Protection Bureau, 2022; The Urban Institute, 2022).  

• Among Midwestern states, Indiana has the highest share of its population with a medical debt in collections. It has the 11th highest share of its population with medical debt in collections nationwide. 

• The percentage of Hoosiers with medical debt in collections underestimates the total number who struggle, as Hoosiers who are making payments or who paid medical bills with credit cards do not have medical debt that shows up on credit reports. 

Head to our Medical Debt Know Your Rights page for resources on navigating medical debt, or view one of our research publications below.

Getting Past "Just Overwhelming:" Equipping La Porte County Residents to Respond to Medical Bills  The Institute partnered with the Health Foundation of La Porte to better understand La Porte County residents' experiences with medical debt and the gaps in knowledge and skills for navigating medical bills. This report describes key takeaways, outreach results, and areas for future work in supporting Hoosiers who are navigating medical bills. October 2025 | Download PDF
Listening to Hoosiers: New Mothers & Medical Debt The transition to parenthood should be a joyful time, not one that is spent dealing with the financial strain of waves of medical bills. The Indiana Community Action Poverty Institute collaborated with Indiana Health Fund, Dr. Jacqueline Wiltshire at IU Fairbanks School of Public Health, and Deborah Fisher and Donjarica Walton, Grassroots MCH Leaders, on a project to study pregnant and postpartum women's experiences with health care costs and debt. In this short publication, Hoosier mothers discuss the causes and consequences of medical debt during pregnancy and early parenthood. October 2024 | Download PDF
Hoosiers should be able to go to the doctor or purchase medicine without worrying about crushing medical bills. Unfortunately, the burden of medical debt is particularly acute in Indiana. This report discusses the health and social impacts of medical debt, explains how individuals become indebted, provides data about financially vulnerable Hoosiers and statewide trends, summarizes recent government and private action, and recommends policy solutions to address rising medical debt.  June 2022 | Download PDF | Policy Options Menu

Current Projects

The Indiana Community Action Poverty Institute is currently collaborating Health Foundation of La Porte in a multi-pronged project that will facilitate lasting community well-being by studying experiences with medical debt, amplifying the voices of county residents who struggle to afford health care, and conducting a Know Your Rights campaign with workshops related to healthcare access, charity care, ACA coverage, and surprise bill resources.