Millions of Americans could have their medical debt forgiven, as proposed by Harris.

• Millions of Americans are being called for medical debt forgiveness by Vice President Kamala Harris.
• At least $220 billion in medical debt is owed by individuals in the U.S., according to a February analysis by KFF.

Vice President Kamala Harris wants to forgive medical debt for millions of Americans.

Harris's economic plan, unveiled last week, proposes to ease people's medical debt and prevent them from accumulating more in the future, as no one should go bankrupt due to illness or injury.

Medical debt affects over 15 million Americans, with a total of at least $220 billion owed, according to research from both the Consumer Financial Protection Bureau and the Kaiser Family Foundation.

Larry Levitt, executive vice president for health policy at KFF, stated that medical debt affects a vast number of individuals, making it a significant concern for voters.

A May poll by the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research found that 51% of adults consider it extremely or very important for the federal government to forgive medical debt, compared to 39% who said the same about student loan debt. The survey involved 1,309 adults.

Mark Kantrowitz, a higher education expert, stated that Vice President Harris might view student loan forgiveness and medical debt forgiveness as solutions to the inequities that hinder individuals from attaining the American dream.

The Harris campaign did not respond to a request for comment.

As president, Donald Trump advocated for greater price transparency in healthcare and the reduction of surprise medical bills, but he has not proposed a plan to cancel medical debt.

The Affordable Care Act was not repealed by the Trump administration, and attempts to do so would result in more Americans being uninsured and higher premium costs for policyholders, according to a Congressional Budget office estimate.

Harris differentiates herself with focus on medical debt

Harris may be seeking to distinguish herself from Biden's student debt initiatives by proposing a medical debt forgiveness plan, according to Braxton Brewington, press secretary for the Debt Collective, an organization that advocates for debt cancellation.

Biden has forgiven more student debt than any other president.

Brewington stated that Harris would likely continue Biden's work on student debt while she has the freedom to move into another space.

"I'm sure she'll do both," he said.

In 2025, the Social Security cost-of-living adjustment may be 2.6%. The inflation breakdown for July 2024 is as follows. The U.S. construction boom is causing rents to decrease.

The American health-care system has long been on Harris' radar.

As a presidential candidate in 2020, Harris advocated for Medicare For All, a plan she no longer supports as she moves towards the center of her party. However, as vice president, she has continued to express concern about healthcare costs and led a White House effort in June to remove medical bills from Americans' credit reports.

This focus may come, in part, from her own experience.

In a 2019 interview, Harris revealed that her mother had informed her of her cancer diagnosis.

Harris tearfully recounted how his mother had shown up at the restaurant wearing makeup and with blow-dried hair, something she never did. She had told them she wanted to meet them for lunch, and when they arrived, she took their hands and revealed that she had been diagnosed with colon cancer.

"One of the worst days of my life was that day, truly."

Harris deemed it "inhumane" for families facing this issue to also have to worry about paying bills, as he told Barkan.

In 2009, at the age of 70, Harris's mother, who was a cancer researcher, passed away.

How medical debt could be canceled

Harris' economic plan lacked specifics on the medical debt jubilee, but experts suggest that government investment would be beneficial.

Medical debt can be purchased from collection agencies for a fraction of its original value, indicating the high number of individuals who struggle to settle their outstanding medical bills, according to KFF's Levitt.

Undue Medical Debt, a nonprofit that collaborates with local governments to erase individuals' medical debts, can typically eliminate approximately $1,000 of debt for every $10, according to Allison Sesso, the organization's president and CEO. The group frequently purchases the debt directly from hospitals, Sesso stated.

By the end of 2026, around 3 million Americans will have their medical debt eliminated thanks to funds from the American Rescue Plan, which is being utilized by states, counties, and cities across the U.S. In Arizona, for instance, 1 million residents could benefit, while 400,000 people in New Jersey may also see relief.

A recent study by the National Bureau of Economic Research found that forgiving medical debt has no positive impact on people's mental health, credit access, or financial distress.

According to experts, the reduction of medical collections under $500 from people's records by major credit reporting companies may have contributed to the decrease in the impact of past-due bills on credit scores. Harris aims to remove even more, if not all, medical debts from credit reports.

People often share with Sesso how canceling their medical debt has positively impacted their lives. In severe situations, unpaid medical bills can result in wage garnishments and asset seizures, she stated.

People who owe a hospital or doctor a bill often avoid necessary treatments, she stated.

"Sesso stated that individuals avoid returning to the doctor due to the fear of being asked for payment, which ultimately leads to the problem worsening and more expensive interventions being necessary."