Do South Dakotans have the highest rate of medical debt in the nation?

Nearly 18% of South Dakota adults have medical debt, the highest percentage in the nation, according to the health nonprofit organization KFF, which analyzed Census data between 2019 to 2021.

Contributing factors include South Dakota’s high rates of poverty and health care expenses. South Dakota ranks second in the nation for medical costs. 

The average medical debt on 15 million Americans’ credit reports is more than $3,100, an increase from $2,000 in 2022. The average rose after the three credit agencies – Equifax, Experian and TransUnion – voluntarily removed medical debt below $500 from peoples’ credit reports.

Two bills were introduced to the South Dakota Legislature in February by Rep. Brian Mulder, (R-Sioux Falls). One would prohibit medical debt from being reported to credit agencies. The other would require hospitals to follow certain policies, such as providing an itemized bill before sending to collections. Neither bill passed.