More Medical-Debt Forgiveness

[lpetrich]

A little over a year ago: Toledo OH city council moves to forgive medical debt | Internet Infidels Discussion Board

Followup:
Toledo, Ohio, Relieving $240 Million in Medical Debt With Biden Funds - Sep 19, 2023, 6:32 AM PDT
and
I-TEAM: Medical debt forgiveness arrives for area patients - Nov. 20, 2023 at 3:02 PM PST
and
City of Toledo receives bill in medical debt forgiveness program - Feb. 2, 2024 at 1:02 PM PST


Homepage - RIP Medical Debt - bragging about a 100:1 efficiency in forgiving medical debt: each $1 forgives $100 in debt. That is from buying the debt and then forgiving it.


I can't find anything more recent than this, however:
Stacey Abrams group donates $1.34M to pay people's medical debts : NPR - Updated October 27, 20214:16 PM ET

 

[lpetrich]

Connecticut to become 1st state to cancel medical debt for eligible residents: Exclusive - ABC News - February 2, 2024, 8:27 AM - "Some 250,000 residents are expected to be eligible, the state said."

CT Governor Ned Lamont announced his plan on "Good Morning America"

The state plans to erase approximately $1 billion in medical debt this year by leveraging $6.5 million in American Rescue Plan Act funds, it said.

"This is not something they did because they were spending too much money, this is something because they got hit with a medical emergency," Lamont told "GMA." "They should not have to suffer twice -- first with the illness, then with the debt."

...
Residents whose household income is up to 400% of the federal poverty line (for a family of four, that's $124,800 annually) or whose medical debt equates to 5% or more of their annual income will be eligible under the program, the state said.

State agencies will do all the work without anyone having to apply for action on their debts.

More than 1 in 10 Connecticut residents have medical debt in collections, according to the state.

Medical debt is the leading source of collections debt for Americans -- greater than credit cards, personal loans, utilities and phone bills combined -- according to a recent Consumer Financial Protection Bureau report.

 

[lpetrich]

Connecticut to become 1st state to cancel medical debt for eligible residents: Exclusive - ABC News

As governments look to address the issue, cities and counties nationwide are using American Rescue Plan funds to provide medical debt relief. According to the White House, $16 million in the stimulus funds are being used to purchase and wipe out nearly $1.5 billion in medical debt in communities nationwide, including New Orleans; Pittsburgh; Toledo, Ohio; and Cook County, Illinois, home to Chicago.

Mayor Adams to Relieve Over $2 Billion in Medical Debt for Hundreds of Thousands of New Yorkers | City of New York

New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan today announced a pioneering medical debt relief program, that will invest $18 million over three years to relieve over $2 billion in medical debt for hundreds of thousands of working-class New Yorkers. Medical debt – the number one cause of bankruptcy in the United States – disproportionately affects uninsured, under-insured, and low-income households, and the city's program would wipe out debt for up to 500,000 New Yorkers on a one-time basis. The city will partner with RIP Medical Debt, a national, New York City-based nonprofit specializing in buying and ultimately wiping out medical debt to acquire debt portfolios and retiree debt from health care providers and hospitals across New York City. Affected New Yorkers will then be notified that their medical debt has been relieved; there is no application process for this program. The one-time debt relief program, the largest municipal initiative of its kind in the country, will launch in early 2024 and run for three years.

ABC News again: "In other measures addressing the burden of medical debt, Colorado last year passed a law removing medical debt from credit reports -- becoming the first state to enact such legislation."

From the Washington State Office of the Attorney General: AG Ferguson: Providence must provide $157.8 million in refunds and debt relief for unlawful medical charges to low-income Washingtonians | Washington State

Attorney General Bob Ferguson announced today that Providence, one of the nation’s largest health care systems, must forgive more than $137 million in medical debt and refund more than $20 million to patients the company billed for services despite knowing they likely qualified for free or reduced-cost health care. The $157.8 million resolution will provide full refunds, plus interest, and debt forgiveness for 99,446 individuals. It is the largest resolution of its kind in the country.

 

[lpetrich]

Arizona Erases Medical Debt For Nearly 1 Million Residents, Prompting Nationwide Credit Score Updates

Arizona Gov. Katie Hobbs, as documented by Business Insider, recently revealed a partnership with the nonprofit group, RIP Medical Debt. Facilitated by $30 million from the American Rescue Plan, this initiative aims to eradicate medical debt for Arizona’s residents. According to Jeff Smedsrud, a board member of RIP Medical Debt, this wholesale relief is equivalent to roughly $2 billion in medical debt, marking it as the “largest public-private initiative ever” of this nature in the U.S.

Impacted residents will promptly receive notifications regarding this significant removal from their medical bills. Their credit scores also will be automatically revised to echo this relief.

One's income must be less than 4 times the poverty line, or else one's medical expenses must be more than 5% of one's income.

Connecticut Governor Ned Lamont recently forgave $650 million in medical debt, helping some 250,000 residents.

 

[lpetrich]

More on the way?

Murphy plan to help people clear medical debt | NJ Spotlight News - April 24, 2023 - "State would partner with nonprofit that pays off medical bills"

Medical debt impacts at least 1 in 5 New Jerseyans, state officials have said, leaving some of them — many of whom are people of color — struggling to pay for food, heat and other necessities or hesitating before they seek other health care.

To reduce that burden, Gov. Phil Murphy has proposed using $10 million to build a New Jersey-based program with a grant to a national nonprofit that buys and retires the medical debt for low-income Americans. The model is now being deployed with public dollars in a growing number of communities nationwide and Murphy said the initiative could help tens of thousands of New Jersey residents clear their charges with hospitals and other medical providers. If approved as part of the budget process, it could be the first statewide publicly funded program of its kind.

Could NJ residents get better protection against medical debt? | NJ Spotlight News - January 11, 2024 - "The governor’s proposals include more transparency in billing and delayed debt collection"