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State, local governments pay off medical debt relief with COVID funds

17 Feb 2023 7:37 AM | Deborah Hodges (Administrator)

Millions of Americans mired in medical debt face difficult financial decisions every day — pay the debt or pay for rent, utilities and groceries. Some may even skip necessary health care for fear of sinking deeper into debt. [Modern Healthcare]

To address the problem, an increasing number of municipal, county and state governments are devising plans to spend federal coronavirus pandemic relief funds to eliminate residents' medical debt and ease those debt burdens.

Related: 18% drop since 2020 in people with reported medical debt

... Cook County, Illinois, which includes Chicago, and Pittsburgh, New Orleans and Toledo, Ohio, are among more than a dozen communities that have set into motion or are considering similar plans. Democratic Connecticut governor Ned Lamont last week proposed spending $20 million in ARPA funds to eliminate as much as $2 billion in state residents' medical debts.

Unlike credit card or loan debt, medical debt is not a choice, advocates said.

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