Paper Cuts: How Medical Bills Bleed Americans Dry

Medical debt has emerged as a pervasive crisis impacting over 100 million Americans, profoundly affecting both financial stability and access to healthcare. This paper investigates the historical origins, current magnitude, and systemic consequences of medical debt in the United States. It analyzes recent federal interventions, particularly the Biden-Harris administration's 2025 Consumer Financial Protection Bureau rule aimed at removing medical debt from credit reports, as well as state and nonprofit initiatives designed to alleviate existing burdens. Drawing insights from interviews with University of Chicago health policy experts and a policy analyst from Undue Medical Debt, this research assesses the efficacy and limitations of medical debt relief programs. Further, it explores the precariousness of these advancements under the second Trump administration, highlighting the risk posed by deregulation and the withdrawal of pandemic-era funding. Ultimately, this paper argues that durable solutions must move beyond reactive relief measures and pursue comprehensive policy reforms centered on affordability, equity, and empathy within the American healthcare system.