The city council of Cleveland, Ohio last night approved legislation that will earmark nearly $2 million to purchase and forgive up to $190 million in unpaid medical debts for city residents, becoming the latest government entity to take measures aimed at lessening the medical debt burdens for its residents.
The trend started last year in Toledo, Ohio, and has since spread across the country to city and state governments. The governments partner with an organization called RIP Medical Debt, which identifies individuals with unpaid medical debts, purchases those debts, and then forgives the debts. RIP Medical Debt has partnered with TV stations, churches, healthcare providers, and unions, among other organizations. RIP Medical Debt has purchased $9 billion of medical debt to date and has helped 5.5 million families with their medical debt burdens.
Like other governments, Cleveland city council will use funds it received from the American Rescue Plan to purchase the medical debts. In order to qualify, individuals must live in a household that earns less than 400% of the federal poverty level or have medical debts that represent at least 5% of that household’s income, which covers about 80% of Clevelanders. Hospitals in Cleveland will partner with RIP Medical Debt to identify the individuals whose debts will be forgiven.
“They’ll chase you down until you’re in the grave, just to get whatever pennies they can,” Councilman Kris Harsh said of medical debt collection, in a published report
