July/August 2022 Reverse Mortgage Magazine

4.5 million: Adults 65 and older with medical debt in 2018. (The CFPB says this amount represents the 8.5% figure.) Numbers CFPB Outlines Extent of Medical Debt Held by Seniors THE FEDERAL CONSUMER Financial Protection Bureau (CFPB) recently reported on medical debt held by people 65 and older before the pandemic. Medical debt is defined as a bill that is past due. About 8.5 percent of these older adults have medical debt, which is lower than younger age groups because of Medicare, which starts at 65. “However, Medicare coverage is limited,” the report says. “For example, Medicare does not typically cover common needs that tend to increase with age, such as routine hearing, vision and dental care. Consequently, these common noncovered expenses lead to large out-of-pocket costs for Medicare beneficiaries, which in turn, contribute to carrying medical debt.” Source: CFPB. The full report can be found at www.consumerfinance.gov/consumer-tools/educator-tools/resources-for-older-adults/data-spotlight-medical-debt-among-older-adults-before-pandemic. 4.3%: Medical debt is at this level with households that have yearly annual incomes of $50,000 to $74,999. 76%: Older adults with medical debt who are retired. 22.2%: Medical debt is at this level with households that have yearly annual incomes of $15,000 to $20,000. 7%: Older adults who have medical debt and are disabled, sick or unable to work. 3.6%: Medical debt is at this level with households that have yearly annual incomes of $75,000 to $99,999. 17%: Older adults with medical debt who are employed. 34.2%: Older adults with medical debt who say they did not fill a prescription due to cost. 36 REVERSE MORTGAGE / JULY-AUGUST 2022

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