GOP’s Budget Bill Could add up to $22,800 in Medical Debt for Some Families

The Republican-backed "One Big Beautiful Bill Act" proposes health care cuts that could push millions of American families deeper into medical debt— in some cases by as much as $22,800 per household. 

The budget plan from House Republicans that slashes $1.1 trillion in health care funding. The proposal targets both Medicaid and Affordable Care Act (ACA) coverage — programs that provide vital care for low- and middle-income families.

According to the Congressional Budget Office (CBO), up to 16 million people could lose their health insurance if the bill passes in its current form. That includes:

• 7.8 million people losing Medicaid

• 8.2 million losing ACA marketplace coverage

• Millions more affected by expiring subsidies and policy changes

Without coverage, families could face devastating financial consequences. Third Way estimates that the resulting loss of coverage would lead to a $50 billion surge in medical debt — a 15% increase over current levels. An additional 5.4 million people could join the more than 100 million Americans who already have some form of medical debt.

Families who’ve never had medical debt before could find themselves owing an average of $22,800. Those already struggling with medical bills could see their balances rise by nearly $9,000 more.

"That's going to put people's dreams back, if they're hoping to go to college or hoping to have a solid retirement or hoping to buy another house," said David Kendall, senior fellow for health and fiscal policy at Third Way. "Medical debt stands in the way of the American dream, and we shouldn't make it worse."

Lawmakers Fight Back

In a letter to Republican leadership, Democratic Senators Jeff Merkley, Cory Booker, Chuck Schumer, and Ron Wyden urged lawmakers to reconsider the cuts.

They pointed to  the real-life consequences: without insurance, people are more likely to delay care, go without medication, or skip food and other essentials just to pay medical bills.

“Addressing medical debt is a national priority,” they wrote, noting that 16 states have already passed measures to cancel medical debt or remove it from credit reports.

The senators also cited a 2013 study showing that Medicaid coverage significantly reduces medical debt, underscoring how access to insurance truly changes lives.

"If the Republican reconciliation bill passes these drastic health care cuts into law, working class families across America risk going further into medical debt," the senators wrote.

"It is not too late to stop these cuts," they wrote.