Tackling the Rising Medical Debt Crisis: Insights and Solutions

Ben H.

Hatched by Ben H.

Jul 03, 2023

3 min read


Tackling the Rising Medical Debt Crisis: Insights and Solutions


Medical debt has become a pressing issue in the United States, with millions of Americans burdened by the financial strain of healthcare expenses. However, recent developments and projections shed light on both the challenges and potential solutions in addressing this crisis. This article aims to explore the efforts made by organizations such as SCAN Group and CareOregon to erase medical debt, as well as the projected rise in healthcare costs and the strategies that could alleviate this burden for individuals and employers.

Erasing Medical Debt: A Temporary Solution

In a commendable move, SCAN Group and CareOregon have stepped forward to alleviate the burden of medical debt for lower-income individuals. Their grants to a charity that buys and forgives medical debt will erase a staggering $110 million in medical bills for nearly 70,000 people in five states. While this initiative provides temporary relief, it is important to acknowledge that it is not a long-term solution to the overarching issue of medical debt. However, the hope is that such initiatives will inspire other entities within the healthcare industry to follow suit and contribute to reducing the burden of medical debt nationwide.

The Projected Rise in Healthcare Costs

According to a projection by PwC's Health Research Institute, healthcare costs are expected to rise by 7% next year. This increase can be attributed to providers grappling with higher expenses and seeking rate increases during contract negotiations with insurers. The projected figures for 2022 and 2023 were 5.5% and 6%, respectively, indicating a steady upward trend. Looking ahead to 2024, the growth in providers' expenses, subsequent rate increases, and pharmaceutical price hikes will drive healthcare inflation. As a result, it is crucial to explore strategies that can help mitigate the impact of rising healthcare costs.

Alleviating the Burden: Strategies for Individuals and Employers

  • 1. Seek Out Financial Assistance Programs: Many individuals are unaware of the financial assistance programs available to them. Hospitals and healthcare providers often offer sliding-scale payment options, charity care, or discounted rates based on income. It is essential for individuals burdened by medical debt to proactively inquire about these programs and take advantage of the support available.
  • 2. Advocate for Policy Changes: Addressing the root causes of the medical debt crisis requires systemic changes. Individuals can play an active role by advocating for policy reforms that promote affordable healthcare, transparency in pricing, and protection against predatory medical billing practices. By raising awareness and engaging in grassroots advocacy, individuals can contribute to long-term solutions.
  • 3. Embrace Preventive Care and Telehealth: Employers have a significant role to play in mitigating healthcare costs for their employees. By encouraging preventive care and telehealth services, employers can reduce the need for expensive treatments and hospital visits. Narrow networks that direct employees to low-cost, high-quality providers can also help employers negotiate better rates and provide more affordable options.


The issue of medical debt in the United States is a complex and multi-faceted problem that requires comprehensive solutions. While initiatives like the one undertaken by SCAN Group and CareOregon provide temporary relief, long-term measures are necessary to address the root causes of this crisis. By exploring strategies such as seeking financial assistance, advocating for policy changes, and embracing preventive care and telehealth, individuals and employers can contribute to reducing the burden of medical debt. It is crucial for the healthcare industry as a whole to come together and find innovative solutions that prioritize affordable and accessible healthcare for all.

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