How This City ERASED $1 Billion In Medical Debt

Up to $1.5 billion of medical debt is being cancelled by local governments thanks to funds from Democrats’ American Rescue Plan. Chicago, Toledo, Pittsburgh & New Orleans have teamed up with the nonprofit RIPMedicalDebt to forgive the debt. With just $1 they can eliminate $100 in debt.

RIPMedicalDebt, founded by two former debt buyers, partners with local governments to purchase debt from local hospitals and then erase it. Debt buyers, like collection agencies, purchase delinquent debt for a fraction of its face value.

Residents who make less than 400% of the poverty line or who are spending over 5% of their income on medical bills automatically qualify.

Local governments have relieved nearly $1.5 billion of debt using just $15.9 million. Cook County, IL will cancel $1 billion in debt. Toledo will cancel $240 million. New Orleans plans to eliminate $130 million. Pittsburgh will forgive $115 million.

Dozens of other local governments have already reached out RIPMedicalDebt to get their own programs running. If you want to bring the program to your city, learn more here: https://ripmedicaldebt.org/campaigns/#start-a-campaign
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