North Carolina's Big Move: Wiping Out Medical Debt for Millions
A Bold Move by North Carolina
North Carolina made a bold move. It cleared medical debt for 2.5 million people. This happened because of a deal with all 99 hospitals in the state. They agreed to cancel old debts and offer discounts to those who qualify.
A Surprise for Dawn Daly-Mack
Dawn Daly-Mack, a nurse from Gaston, got a surprise. She found a letter in her mailbox. It said her medical bill was paid. She owed $459 from a 2014 emergency room visit. She couldn't pay it at the time. She was the only one bringing money into her family.
The State's Plan
The state's plan does two things:
- Erases old debts
- Stops new debts from piling up
Hospitals will now automatically give discounts to those who qualify. For a family of four, that means an income under $96,000 a year.
Allison Sesso's Perspective
Allison Sesso, CEO of Undue Medical Debt, is happy. She says this plan does two big things:
- Helps people with old debts
- Fixes problems that cause new debts
Kody Kinsley's Struggle
Kody Kinsley, former health secretary, knows the struggle. His dad had a stroke when he was in college. His mom worried about paying the bills. They didn't have health insurance. Kinsley found a way to get a discount. Years later, he heard similar stories. People had new insurance but still owed old debts.
The Solution
So, Kinsley made a plan. The state tied Medicaid dollars to debt relief. Hospitals agreed to give discounts automatically. Now, people can focus on their health, not their wallet.
Other States Taking Action
Other states are also taking action:
- Arizona and New Jersey bought and forgave medical debt.
- Oregon and Illinois screen patients for financial help.
- Colorado and New York ban medical debt from credit reports.
But the help is uneven. Your zip code determines your protection.
Heather Howard's Concern
Heather Howard, from Princeton University, is worried. She thinks federal rules are needed. With more people losing insurance, the problem will grow.
