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Metro Detroiters struggling with medical debt hopeful for relief
Metro Detroiters struggling with medical debt hopeful for relief

CBS News

time18 hours ago

  • Health
  • CBS News

Metro Detroiters struggling with medical debt hopeful for relief

Medical expenses, whether big or small, weigh on almost everyone. For many Michiganders, one bill can often lead to a spiral into serious debt. Carrecia Watkins knows that struggle firsthand after getting into a car accident back in 2023. "A big, huge impact that I wasn't ready for," Watkins said. "Someone hit me, and they were totally at fault, but because she didn't have any insurance, I was stuck with the bill." Still dealing with long-lasting injuries, Watkins now has close to $5,000 in medical bills and ongoing therapy costs for her recovery. "Now I've got this hefty medical bill that I have to pay, and there's nothing I can do," Watkins said. Watkins' story is one of thousands that pushed the Michigan Gov. Gretchen Whitmer's administration to announce a new partnership to address the growing problem. Working with the national nonprofit Undue Medical Debt, the plan takes on the medical bills at discounted rates and then forgives the charges. "This program just takes another burden off the table," said Dr. Kimberly Farrow, president and CEO of Central City Health, a community health center in downtown Detroit. Her team works directly with patients who may be uninsured or underinsured — many of whom would benefit directly from the new debt relief plan. "It's touching so many people on that spectrum, people who are severely impoverished and those who are like the working poor. They're working every day, but they just can't afford their medical bills," Farrow said. Under the current plan, nearly 210,000 Michiganders, including many who are patients at places like Central City Health, will get close to $144 million in medical debt completely erased. CBS News Detroit took a closer look and found that the program will help anyone who earns four times or less than the federal poverty level, or if their medical debts are equal to 5% or more of their annual income. "This program really provides relief for both the hospital systems that take care of our people, but also the patients that are struggling day to day to put food on the table," Farrow said. This first round clears outstanding bills for thousands of patients in many nearby Michigan counties, including Wayne, Macomb and St. Clair. People who qualify will start receiving information on their status in the coming months.

Over 210,000 Michigan residents to benefit from medical debt relief plan
Over 210,000 Michigan residents to benefit from medical debt relief plan

CBS News

time5 days ago

  • Business
  • CBS News

Over 210,000 Michigan residents to benefit from medical debt relief plan

Over 210,000 Michigan residents will get financial assistance from a new partnership intended to forgive their outstanding medical debt. Michigan Gov. Gretchen Whitmer and others made the announcement Thursday, saying that the first round of debt forgiveness under this plan will assist over 210,000 individuals with clearing over $144 million in medical debt. "Medical debt affects our friends, neighbors, and families, making it harder to get a job, put food on the table, or access medical care," Lt. Governor Garlin Gilchrist II said in his statement. "Today's forgiveness of over $144 of medical debt will help over 200,000 Michiganders in communities across our state move forward with their lives." This effort is a partnership with the nonprofit Undue Medical Debt. On average, each dollar donated to the organization is used to settle $100 of medical debt. Undue Medical Debt says it starts the process through buying large amounts of debt at a discount. But rather than collecting on the amounts due, the agency says it forgives the balance for the intended beneficiaries. The goal is "freeing them from bills they can't afford." Medical debt is often cited as a leading reason for bankruptcy, the state's announcement said. Those who were selected will get a letter in the mail from Undue Medical Debt that explains the circumstances and how the debt relief was applied to their accounts. The list of eligible patients came from hospitals and other medical providers that have chosen to participate with Undue Medical Debt. Those who qualify for this medical debt relief program have household income either four times or below the federal poverty level (those ranges for Michigan residents include $62,000 annually for one person and $84,600 for two people) or whose outstanding medical debt equal 5% or more of their annual income. This first round clears outstanding bills for thousands of patients in Calhoun, Genesee, Ingham, Jackson, Kent, Lenawee, Macomb, Monroe, St. Clair and St. Joseph counties, according to the State of Michigan announcement. There also are some recipients in other counties. Additional rounds of medical debt forgiveness will take place in the future, state officials said. Similar efforts have taken place on a one-time, ad hoc basis across the country. One example was a partnership with Undue and Wayne, Oakland and Kalamazoo counties during 2024 that relieved about $4.5 million in medical debt.

Cook County erases $665M in medical debt for over half a million residents
Cook County erases $665M in medical debt for over half a million residents

Yahoo

time06-06-2025

  • Health
  • Yahoo

Cook County erases $665M in medical debt for over half a million residents

The Brief Cook County launched a Medical Debt Relief Initiative in 2022 using $9 million in COVID-19 funds. The program has erased $665 million in medical debt for over 550,000 residents through a partnership with Undue Medical Debt. Officials say the relief reduces financial stress and encourages people to return for preventive and emergency care. COOK COUNTY - Getting sick is hard enough — but the medical bills that follow can be just as painful. Which is why years ago, Cook County created a program to help people tackle medical debt. What we know On Thursday, Cook County board President Toni Preckwinkle touted its success. "We're stepping in where the system has failed and where families would otherwise be left to shoulder these costs alone," Preckwinkle said. Cook County leaders provided an update on the Medical Debt Relief Initiative, which was launched by the county in 2022 using $9 million in COVID funds. The county partners with a company called Undue Medical Debt, which buys up old and uncollectible bills from hospitals and health centers for a fraction of the price--then forgives that debt. Preckwinkle said since the program started, the county has erased $665 million in medical debt carried by more than 550,000 Cook County residents. To qualify for debt relief, you must have an income no more than four times the poverty level, or have medical debt that's 5% or more of your annual income. Nationwide, more than 20 million Americans carry some amount of medical debt, making it one of the leading causes of bankruptcy in the United States. The company that buys up the uncollected debt for Cook County said they've heard from hundreds of people who have been surprised to get a letter in the mail saying they're debt-free. "It's a mental weight that's been lifted from them. That the burden of owing that medical bill is no longer there," said Undue Medical Debt Vice President Courtney Werpy Story. "We've also heard both from our constituents as well as hospitals that those whose medical debt is forgiven tend to return to care. They're less afraid of going back to the doctor or hospital system to receive either preventative or emergency care as well." What's next Preckwinkle said when the federal money runs out next year, Cook County will consider funding the debt relief initiative on its own.

Connecticut expands medical debt relief to 100,000 more residents: Who is eligible
Connecticut expands medical debt relief to 100,000 more residents: Who is eligible

Yahoo

time24-05-2025

  • Health
  • Yahoo

Connecticut expands medical debt relief to 100,000 more residents: Who is eligible

More than 100,000 Connecticut residents will soon receive letters notifying them of medical debt relief, according to a community announcement. Gov. Ned Lamont announced May 21 that the second round of an initiative, launched last year in partnership with the nonprofit Undue Medical Debt, is underway. The program aims to eliminate medical debt for residents who meet specific income criteria. Undue Medical Debt negotiates with hospitals and other providers to eliminate large portfolios of qualifying medical debt. To qualify, residents must have an income at or below four times the federal poverty level or have medical debt that is 5% or more of their income. In this round, the state invested $575,000 of American Rescue Plan Act funding. Undue Medical Debt was able to negotiate with a secondary market partner to acquire and eliminate more than $100 million in qualifying medical debt. The first round, which occurred in December, eliminated approximately $30 million in medical debt for 23,000 residents. Those who have been identified for relief will receive a branded envelope and letter from Undue Medical Debt in the mail over the next several days. (To view a sample of what this letter looks like, click here.) 'Medical debt causes additional anxiety and stress when individuals and families are coping with potentially life-threatening health situations,' Lamont said. 'Over the next few days, more than 100,000 Connecticut residents who have been struggling to pay their medical bills will feel relief when they receive letters in the mail notifying them that their debt has been erased. I am hopeful that additional medical partners will soon sign onto this program to help more Connecticut families through further rounds of this initiative.' Allison Sesso, CEO and president of Undue Medical Debt, expressed gratitude for the state's continued partnership in providing medical debt relief. 'The erasure of these debts of necessity wouldn't be possible without community-minded leaders like Governor Lamont and his team, who believe medical debt should not be a hindrance to seeking needed care,' Sesso said. 'We look forward to continuing our work in the state so families can seek healthcare with dignity.' State Rep. Cristin McCarthy Vahey, co-chair of the legislature's Public Health Committee, also praised the initiative. 'Medical debt can be a crippling burden on patients, especially those who are already struggling to make ends meet,' Vahey said. 'Erasing medical debt for an additional 100,000 residents will greatly ease the stress they are facing and will free them up to focus on their health and well-being. Thank you to Governor Lamont and Undue Medical Debt for their leadership on this innovative program.' There is no application process for this relief, as the debt erasure occurs through the purchase of large, qualifying bundled portfolios of debt from participating partners like hospitals and collection agencies. Lamont plans to continue partnering with Undue Medical Debt for further rounds of medical debt cancellation. The governor and the Connecticut General Assembly have enacted legislation that makes $6.5 million in ARPA funding available for this initiative. This story was created by reporter Beth McDermott, bmcdermott1@ with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at or share your thoughts at with our News Automation and AI team. This article originally appeared on The Bulletin: Is your CT medical debt being erased? Check your mail this week

Connecticut erases medical debt for 100,000 residents
Connecticut erases medical debt for 100,000 residents

Yahoo

time22-05-2025

  • Health
  • Yahoo

Connecticut erases medical debt for 100,000 residents

Around 100,000 Connecticut residents burdened by medical debt will get letters this week wiping their slates all or partially clean, Gov. Ned Lamont announced Wednesday. Partnering for a second time with the nonprofit organization Undue Medical Debt, the government mined funding from the American Rescue Plan Act to buy $100 million in debt for $575,000. In December, the state erased $30 million in debt for 23,000 residents, eventually planning to wipe out $1 billion in debt for an estimated 250,000 residents. People and families contending with 'potentially life-threatening health situations' shouldn't have to cope with the 'additional anxiety and stress' of not being able to pay for treatment, Lamont said in a statement. To qualify, household income must be at or below four times the federal poverty level, which is $32,150 for a family of four, or the debt must equal at least 5% of income. Acquired in bulk for pennies on the dollar from hospitals and collection agencies, the debt by its very nature belongs to those least able to pay, so there's no way to request or apply for the relief. More than 100 million adults in the U.S. collectively owe more than $220 billion in medical debt, according to the health care nonprofit KFF, formerly the Kaiser Family Foundation. At least 26 state and local governments so far have alleviated medical debt for some residents, following in the footsteps of Connecticut, the first state to launch a medical debt relief initiative. In the past week alone, Los Angeles County in California, Wayne County in Michigan, and the state of Rhode Island have announced similar relief. The initiative is alive and well in New York City too, with Mayor Adams last year laying out a plan to eliminate more than $2 billion in medical debt for up to 500,000 residents. With News Wire Services

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