WHY MEDICAL DEBT RELIEF?

Medical debt is a uniquely American problem. It exceeds the amount owed on credit cards, utilities, and phone bills combined. Medical debt can affect credit scores, and accounts for most of the collections on consumer credit reports. Medical debt is also the leading cause of bankruptcy.

People who cannot pay medical bills risk more than credit and budget problems, though. They may skip medical care and avoid filling prescription medications because they cannot afford them, which creates public health concerns. Perhaps more importantly, it has an overall negative impact on community vibrancy, as people struggle to pay off medical debt they are not investing in education, home improvement, self-care, supporting local businesses, etc...

MEDICAL DEBT IN THE MIAMI VALLEY

Currently, there is $22.74 MM in qualified medical debt in Miami Valley impacting more than 13,000 people who earn at or below 4X the federal poverty level or whose debt is more than 5% of their income. These are the people who are struggling the most and will benefit the most.

WHO BENEFITS FROM MEDICAL DEBT RELIEF?

Medical debt relief benefits a variety of individuals and communities, including:

1. Patients and Families – People burdened by medical debt experience reduced financial stress, improved credit scores, and greater access to essential healthcare services without fear of overwhelming costs.
2. Low-Income and Uninsured Individuals – Those without health insurance or with inadequate coverage benefit the most, as they often face high out-of-pocket expenses for necessary medical care.
3. Healthcare Providers and Hospitals – When patients are relieved of medical debt, they are more likely to seek preventive and follow-up care, reducing emergency room visits and uncompensated care costs for hospitals.
4. Local Economies – By alleviating medical debt, individuals have more disposable income to spend on housing, food, and other necessities, boosting economic stability within communities.
5. Mental and Physical Well-being – Reducing financial stress linked to medical debt can improve overall mental and physical health, leading to better productivity and quality of life.
   

COLLABORATORS

The Collaboratory is honored to be working with these organizations. We thank them for their support. 

THREE WAYS TO GET INVOLVED

1. Activate your congregation, service club, community organization or professional association by contacting Peggy West at  peggy@daytoncollaboratory.org.
2. Use the DONATE NOW button or donate at:  https://secure.givelively.org/donate/involvement-advocacy/miami-valley-medical-debt-relief. [NOTE: Individuals and organizations wanting to donate by check can make a check out to Involvement Advocacy, P. O. Box 10506, Dayton, Ohio 45402. For ACH transfers, contact peter@daytoncollaboratory.org for the Routing and Account Numbers.]
3. Help spread the word. Please share this link on your social media platforms so others can get involved.
   

FAQs

Why is Medical Debt a National Crisis?

• Medical debt is the #1 cause of consumer bankruptcy in the country.
• Debt lingers on a person’s credit report to negatively impact their ability to buy a home, get a loan, or even gain employment (The American Journal of Medicine)
• Medical costs cause a serious financial problem for 26% of American adults each year (NPR/Harvard 2016)

Why is The Collaboratory leading this effort?

• As part of our seven-county Community of Well-Being Initiative, The Collaboratory recognizes that medical debt relief impacts well-being:
• Improved credit ratings mean recipients have greater ability to obtain mortgages or make improvements to their current homes
• More funds available for everyday expenses like healthy food and utilities means reduced stress worrying over finances.

Who qualifies for Undue Medical Debt’s debt relief?

• When Undue Medical Debt purchases a portfolio of medical debt, they abolish debt for individuals who meet at least one of the two criteria below:
• Earning at or below 4x the federal poverty level (varies by state, family size)
• Have debts that are 5% or more of annual income

How much does it cost to abolish debt? 

• Because Undue Medical Debt is purchasing medical debt in bulk, they are able to negotiate the price of the debt portfolios and purchase them for pennies on the dollar; it costs approximately $1 to abolish $100 of medical debt
• The cost of debt fluctuates (as dictated by the age of the medical debt and how many debtors are included in a particular portfolio). As such, the 100:1 ratio is an estimate –not a guarantee.

Where is the Medical Debt sourced from? 

• Undue Medical Debt purchases debt from the secondary debt market and healthcare providers
• Debt is purchased in bundled portfolios to help relieve debt for thousands of individuals at once

Note that Undue Medical Debt has access to only a small fraction of the medical debt that exists in the US based on the qualifying criteria.

WHAT TO DO IF YOU HAVE MEDICAL DEBT

Dealing with medical debt can feel overwhelming and stressful. If you have medical debt, below are steps you can take to manage and potentially reduce it. Remember, there are resources out there that can help you negotiate with your provider and/or apply for charity care. You are not alone. 

1. Review Your Bills

• Check for errors, duplicate charges, or services you didn’t receive.
• Request an itemized bill to see each charge separately.
• Compare the bill with your insurance explanation of benefits (EOB) to ensure coverage was applied correctly.

2. Negotiate with the Provider

• Call the hospital or doctor’s office and ask if they offer discounts for cash payments.
• Request financial assistance or a payment plan.  Many hospitals have financial assistance policies (FAPs) that forgive or reduce medical bills.
• Offer to pay a reduced amount in a lump sum if they agree to settle for less.

3. Check for Assistance Programs

• Nonprofits and government programs may help with medical debt.
• If your income is low, check if you qualify for charity care programs. Click here for organizations that can help you apply for charity care.

4. Dispute Incorrect Charges

• If you find errors, dispute them with the provider and your insurance.
• You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if a medical debt collector is treating you unfairly.

5. Set Up a Payment Plan

• Many providers offer low- or no-interest payment plans.
• Make sure the payments fit your budget before agreeing to a plan.

6. Avoid High-Interest Debt Solutions

• Be cautious with medical credit cards or personal loans that may have high interest rates.
• Avoid putting medical debt on a credit card unless necessary.

7. Know Your Rights

• As of 2022, unpaid medical debt under $500 no longer appears on credit reports.
• Debt collectors must give you a 60-day notice before reporting medical debt to credit bureaus.
• The No Surprises Act protects against certain unexpected out-of-network medical bills.

8. Consider Debt Relief Options

• If your debt is overwhelming, look into credit counseling or a debt settlement program.
• Bankruptcy should be a last resort, but medical debt is often dischargeable in bankruptcy.