INDIANAPOLIS — President Joe Biden said he plans to ban medical debt from showing up on credit reports.
More than half of all the debt in collections in the United States is medical debt, and statistics show Hoosiers are hit particularly hard.
According to Indiana University, Indiana has the nation's 11th highest rate of medical debt in collection. That’s the highest in the Midwest.
Statewide, more than 18% of Hoosiers have medical debt in collection, totaling $2.2 billion.
One in five people in Marion County have medical debt in collection. That means there are almost 200,000 people who would be impacted by this rule in Marion County.
Colleen Rusnak is executive director of the Indiana Health Fund. It was founded in 2020 by a pair of OB/GYNs who saw how much people were impacted by medical debt.
“Medical bills can impact people’s basic needs,” Rusnak said. “That includes renting an apartment, gas, groceries, renting a car. Medical bills should not prevent people from having basic needs.”
The organization helps with people funding medical bills before it is sent to collections. They receive financial grants and work with hospitals to determine who may need the money to pay off the medical debt. There’s also a focus on education to help prevent people from getting into debt in the first place.
“Understanding how to work with your insurance, how to get a health savings account,” Rusnak said. “And planning and preparing for medical expenses.”
About 20 people have received grants from the Indiana Health Fund. Rusnak said often, the people the organization helps do have insurance but could have a high deductible.
“Over 50% of bankruptcies are due to medical debt,” Rusnak said. “People avoid going to the doctor because of the bill.”