Medical debt has remained a significant challenge for millions of Americans, with the total medical debt ranging between $80 and $120 billion. The resulting financial and emotional stresses faced by patients, coupled with the fear of forgoing necessary healthcare or declaring bankruptcies, have encouraged US lawmakers at state and federal levels to introduce legislation that would ease this burden.
A charity offers a glimmer of hope
One promising initiative that is already providing relief to Americans is the charity RIP Medical Debt. Since its establishment in 2011, the charity has purchased and abolished more than $8.5 billion worth of medical bills for over 5.4 million people across the United States.
The nonprofit organization buys delinquent medical debts at pennies on the dollar from creditors, then selects individuals who live below four times the poverty level or whose debts are five percent or more of income. These bills are often less than $2,000, but they make all the difference in helping provide much-needed financial relief for those hit hardest by soaring medical costs.
Despite its remarkable achievements, RIP Medical Debt recognizes that it is not a solution to the underlying problems facing America’s healthcare system. Still, it provides hope that there is some good in the world and that even small actions can make a difference.
Lawmakers introduce new measures to ease medical debt burdens
Several US states and Congress have recently turned their attention to tackling medical debt burdens by introducing new measures that would protect debtors from aggressive collections and reduce interest rates.
Lawmakers in Colorado, Pennsylvania, Massachusetts, New York, New Jersey, and Illinois are proposing bills that would prevent medical debt from being included in credit reports. These bills aim to combat the high number of personal bankruptcies filed due to mounting medical debts.
Colorado House lawmakers recently approved a bill seeking to reduce maximum interest rates for medical debts to three percent, improve the transparency of healthcare costs, and suspend debt collection during appeals processes. Arizona and North Carolina are also considering reducing interest rates.
New Jersey has proposed a bill that would use funds from the American Rescue Plan Act to help eradicate medical debt for residents, while other states like Pennsylvania and Arizona are proposing similar relief programs using state funds.
Florida and Massachusetts are proposing bills that would protect certain personal property, such as cars, from being seized as collateral to pay for medical debt. The bills also require providers to be more transparent about costs.
Medical debt burdens continue to affect millions of Americans
Medical debt remains one of the leading causes of personal bankruptcy in the United States. According to estimates, a staggering $200 billion worth of medical debts affects an estimated 100 million Americans.
Individuals with medical debt often face further adversity as they are forced to forgo crucial healthcare services, take on additional jobs or work longer hours to keep up with payments. Worse still, some patients opt for drastic measures such as taking out second mortgages or slashing their grocery budgets to pay off debts.
Moreover, medical debts often arise from unexpected acute-care treatments that leave patients with hefty bills and little time to prepare. As a result, many patients are unable to meet these financial obligations and fall into arrears.
Conclusion
The growing burden of medical debt in America continues to take a toll on millions of people across the country. However, with initiatives such as RIP Medical Debt and the introduction of new state and federal legislation aimed at easing this burden, there is hope that things will get easier for those already struggling.
It is now up to both policymakers and individuals to play their part in supporting these initiatives by ensuring greater transparency in billing practices and working towards long-term solutions that can truly deal with the ever-growing problem of medical debt.
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