Summary
North Carolina's medical debt relief program has erased more than $6.5 billion in medical debt for over 2.5 million residents. This initiative affects nearly a quarter of the state's population and is the result of a program offering hospitals extra Medicaid funds if they relieve medical debt for low- and middle-income patients. The program, approved by state lawmakers, aims to remove medical debt from credit reports and discourage future liabilities.
Key Facts
- More than 2.5 million people in North Carolina had over $6.5 billion in medical debt erased.
- The average debt erased per person was about $2,600.
- The debt is removed from credit reports, improving financial stability for these residents.
- The program began as an initiative providing hospitals with additional Medicaid funds to relieve medical debt.
- Hospitals had to eliminate debt dating back to 2014 for Medicaid enrollees and other debts based on income.
- The program is part of the Healthcare Access and Stabilization Program that expanded Medicaid in the state.
- Hospitals agreed to participate by adopting policies that discourage future medical debt.
- Notices are being sent to recipients to inform them of their relieved medical debt.
