Even before COVID-19, Americans already owed $140 billion for delinquent medical bills. When the pandemic hit the United States, that debt burden appeared likely to increase significantly, as hospitalizations spiked, unemployment soared, and millions lost their employer-sponsored health benefits.
Instead, overall medical debt fell, according to research by Chicago Booth PhD candidate Benedict Guttman-Kenney, Harvard’s Raymond Kluender, Stanford’s Neale Mahoney, Francis Wong of the Ludwig-Maximilians University of Munich, Duke PhD student Xuyang Xia, and University of California at Los Angeles’s Wesley Yin. Elective medical procedures plummeted, and the federal government pumped money into pandemic relief support, higher unemployment benefits, and health-insurance exchanges and Medicaid (the government health-care program for the poor).
Medical-debt levels were already trending downward before the pandemic, and that continued, with proportionally similar declines across different income groups, the researchers find. The fall was unrelated to infection and vaccination rates.