Nonprofit seeks to wipe out up to $700M in medical debt in Wayne County

Wayne County, Michigan – The county is working with nonprofits to wipe out up to $700 million in medical debt for Wayne County residents.

RIP Medical Debt, a national nonprofit organization, plans to work with hospitals, health systems, and physician organizations to forgive debt for some residents. To qualify, residents with medical debt must have an income less than four times the federal poverty level or have debt that is more than 5% of their annual income.

Residents do not need to apply for medical debt forgiveness. RIP will find eligible individuals, negotiate with health centers on their behalf, and purchase their debts in bulk. If negotiations are successful, RIP will send a letter to the resident informing them that the debt has been canceled.

“No one takes on medical debt willingly. They do so because of illness or injury,” said Dr. Abdul El-Sayed, Wayne County Health, Human and Veterans Services Director. “For many Wayne County residents, this has resulted in damaged credit, mortgage denials, and missed opportunities. With this courageous step, Wayne County is stepping in to end this situation.” .”

This program is partially funded by the American Rescue Plans Act (ARPA).

“We are excited to work with Wayne County to launch a program that will alleviate serious medical debt in our community,” said RIP Medical Debt CEO and President Alison Sesso. “This collaboration is poised to support those with the least ability to repay medical debt and alleviate major obstacles to financial and mental well-being. As we ensure medical debt is erased, debt An announcement will be made to the community that a letter of relief is imminent.”