# Medical Debt * **Definition:** Money owed for medical services received, which can lead to financial burden for individuals and families, often resulting from high costs of healthcare services and treatments. * **Taxonomy:** Healthcare Topics / Medical Debt ## News * Selected news on the topic of **Medical Debt**, for healthcare technology leaders * 4.1K news items are in the system for this topic * Posts have been filtered for tech and healthcare-related keywords | Date | Title | Source | | --- | --- | --- | | 5/16/2025 | [**Medical debts erased for 310,000 residents of Orange County - Yahoo**](https://www.yahoo.com/news/medical-debts-erased-310-000-100000848.html) | [[Yahoo]] | | 4/22/2025 | [**NJ to eliminate medical debt for over 600,000 more residents. Here's who qualifies - Yahoo**](https://www.yahoo.com/news/nj-eliminate-medical-debt-over-180541289.html) | [[Yahoo]] | | 4/21/2025 | [**NJ to eliminate medical debt for over 600K residents. Here's why qualifies - Yahoo**](https://www.yahoo.com/news/nj-eliminate-medical-debt-over-192843405.html) | [[Yahoo]] | | 4/7/2025 | [**Blockbuster Deal Will Wipe Out $30 Billion in Medical Debt. Even Backers Say It's Not Enough.**](https://kffhealthnews.org/news/article/undue-medical-debt-blockbuster-deal-relief-billions/) | [[KFF Health News]] | | 4/7/2025 | [**Blockbuster Deal Will Wipe Out $30B in Medical Debt. Even Backers Say It's Not Enough.**](https://www.healthleadersmedia.com/payer/blockbuster-deal-will-wipe-out-30b-medical-debt-even-backers-say-its-not-enough) | [[HealthLeaders Media]] | | 2/26/2025 | [**Pritzker announces round 3 of medical debt relief program at University of Chicago**](https://www.aol.com/pritzker-announces-round-3-medical-235359934.html) | [[AOL]] | | 1/27/2025 | [**What To Do If You're Struggling With Medical Debt**](https://www.forbes.com/sites/nextavenue/2025/01/27/what-to-do-if-youre-struggling-with-medical-debt/) | [[Forbes]] | | 1/15/2025 | [**Have Medical Debt? So Does Over Half of America**](https://www.aol.com/medical-debt-does-over-half-155700147.html) | [[AOL]] | | 1/11/2025 | [**Native Americans face higher-than-average medical debt, report finds - often for bills that ...**](https://www.yahoo.com/news/native-americans-face-higher-average-230000976.html) | [[Yahoo]] | | 1/8/2025 | [**New rule wipes medical debt from consumer credit reports**](https://www.healthcaredive.com/news/new-rule-wipes-medical-debt-from-consumer-credit-reports/736692/) | [[Healthcare Dive]] | | 1/8/2025 | [**New rule wipes medical debt from consumer credit reports - Yahoo Finance**](https://finance.yahoo.com/news/rule-wipes-medical-debt-consumer-103829547.html) | [[Yahoo Finance]] | | 1/3/2025 | [**Why the CFPB Medical Debt Credit Reporting Ban Could Hurt More Than It Helps**](https://hitconsultant.net/2025/01/03/why-the-cfpb-medical-debt-credit-reporting-ban-could-hurt-more-than-it-helps/) | [[HIT Consultant]] | | 12/18/2024 | [**MacKenzie Scott gives rare third gift to medical debt relief group - Yahoo**](https://www.yahoo.com/news/mackenzie-scott-gives-rare-third-195503008.html) | [[Yahoo]] | | 12/17/2024 | [**'This can be life changing': Conn. program to erase $30M in medical debt for thousands**](https://www.yahoo.com/news/life-changing-conn-program-erase-152227149.html) | [[Yahoo]] | | 12/4/2024 | [**Why the CFPB Medical Debt Credit Reporting Ban Could Hurt More Than It Helps**](https://www.healthcareittoday.com/2024/12/04/why-the-cfpb-medical-debt-credit-reporting-ban-could-hurt-more-than-it-helps/) | [[Healthcare IT Today]] | | 12/3/2024 | [**With Trump on the Way, Advocates Look to States to Pick Up Medical Debt Fight**](https://www.healthleadersmedia.com/revenue-cycle/trump-way-advocates-look-states-pick-medical-debt-fight) | [[HealthLeaders Media]] | | 11/13/2024 | [**St. Paul, Fairview and nonprofit wipe out $37 million in medical debt for 32000 residents**](https://www.startribune.com/st-paul-fairview-and-nonprofit-wipe-out-37-million-in-medical-debt-for-32000-residents/601180323) | [[Star Tribune]] | | 11/12/2024 | [**St. Paul wipes out nearly $40 million in medical debt for 32K residents**](https://www.aol.com/st-paul-wipes-nearly-40-142447283.html) | [[AOL]] | | 11/12/2024 | [**St. Paul Mayor Melvin Carter announces $40 million in citywide medical debt relief via ...**](https://www.yahoo.com/news/st-paul-mayor-melvin-carter-232700138.html) | [[Yahoo]] | | 11/11/2024 | [**This Is How Much Medical Debt the Average Person Has in Each State**](https://finance.yahoo.com/news/much-medical-debt-average-person-140050216.html) | [[Yahoo Finance]] | | 11/10/2024 | [**This Is How Much Medical Debt the Average Person Has in Each State**](https://www.aol.com/finance/much-medical-debt-average-person-140050568.html) | [[AOL]] | | 8/31/2024 | [**$42 million in medical debt erased for more than 62,000 DC residents - Yahoo**](https://www.yahoo.com/news/42-million-medical-debt-erased-143040675.html) | [[Yahoo]] | | 8/29/2024 | [**The City of Cincinnati is relieving medical debt. Are you eligible?**](https://www.yahoo.com/news/city-cincinnati-relieving-medical-debt-161423940.html) | [[Yahoo]] | | 7/11/2024 | [**Relieving the Growing Burden of Medical Debt**](https://kffhealthnews.org/news/article/health-brief-los-angeles-county-medical-debt/) | [[KFF Health News]] | | 7/11/2024 | [**Relieving the Growing Burden of Medical Debt**](https://californiahealthline.org/news/article/health-brief-los-angeles-county-medical-debt/) | [[California Healthline]] | ## Topic Overview (Some LLM-derived content — please confirm with above primary sources) ### Key Players - **Undue Medical Debt**: A national non-profit established in 2014 that purchases medical debt at discounted rates and has relieved nearly $15 billion in debt for over 9 million individuals. - **Los Angeles County**: Initiated a comprehensive plan to address a $2.9 billion medical debt crisis by targeting hospitals and improving patient debt tracking and collection practices. - **BuoyFi**: A company that offers tools to help patients manage medical debt and advocates for positive credit reporting for medical debt payments. - **Advocate Health**: Announced a debt relief plan aimed at alleviating the burden of medical debt for its patients by canceling judgment liens on homes and forgiving associated debts. - **Consumer Financial Protection Bureau (CFPB)**: Proposed new federal regulations to prevent medical debts from negatively impacting Americans' credit scores. - **American Medical Association (AMA)**: A professional association that supports the CFPB's proposal to alleviate financial burdens on patients by removing medical debt from credit reports. - **California Government**: Implemented legislation to prevent healthcare providers from reporting medical debt to credit agencies. - **Biden Administration**: The current U.S. government administration focused on implementing policies to alleviate medical debt and improve consumer protections. - **MacKenzie Scott**: Philanthropist who has made significant donations to organizations addressing medical debt. - **Illinois Health and Hospital Association**: An organization working with hospitals to support medical debt relief programs. ### Partnerships and Collaborations - **Illinois Department of Healthcare & Family Services and Undue Medical Debt**: Collaborating to negotiate and buy down patient debt, resulting in significant debt relief for eligible individuals. - **Illinois Medical Debt Relief Pilot Program**: A collaborative initiative between the Illinois government and Undue Medical Debt, aimed at relieving medical debt for low-income residents. - **New Jersey and Undue Medical Debt**: A collaboration to forgive $100 million in medical debt for nearly 50,000 residents, targeting debts owed to Prime Healthcare hospitals. - **Los Angeles County and Undue Medical Debt**: A pilot program to purchase and forgive medical debt for low-income patients, aiming to alleviate the financial burden on families. - **BuoyFi and Reporting Medical Debt Payments Act**: BuoyFi supports legislation aimed at reflecting positive medical debt payments in credit scores. - **Rhode Island and Undue Medical Debt**: Rhode Island launched a program to eliminate medical debt for residents, partnering with Undue Medical Debt. - **Los Angeles County Medical Debt Coalition**: A coalition including local health organizations and nonprofits working to eliminate $2 billion in medical debt for county residents. - **Connecticut and Undue Medical Debt**: Connecticut officials announced a partnership with Undue Medical Debt to eliminate $30 million in medical debt for residents. - **Wayne County and Undue Medical Debt**: Collaboration to cancel $27 million in medical debt for over 46,000 residents, targeting those with incomes up to four times the federal poverty level. - **Mainers For Working Families and Undue Medical Debt**: Collaborated to cancel over $1.8 million in medical debt for more than 1,500 Mainers. - **St. Paul and Undue Medical Debt**: St. Paul partnered with Undue Medical Debt to eliminate nearly $40 million in medical debt for residents. - **North Carolina Medical Debt Initiative**: A statewide plan involving all 99 hospitals to forgive medical debt and implement new standards for patient protection. - **North Carolina Hospitals and NCDHHS**: Participating in a program to receive upgraded Medicaid payments to help reduce medical debt for low-income residents. - **Cincinnati and UC Health**: A partnership to alleviate medical debt for families earning under 400% of the federal poverty line, projected to relieve approximately $130 million in medical debt. - **Oakland County Initiative**: A related effort to eliminate $9.1 million in medical debt for over 14,000 residents, aimed at improving financial situations. - **North Carolina Hospitals**: All 99 hospitals in North Carolina agreed to eliminate billions in patient debt and implement new protections against excessive billing as part of a state initiative. ### Innovations, Trends, and Initiatives - **Medical Debt Fairness Act**: Minnesota's new legislation prohibits medical debt from being reported to credit agencies, aiming to protect consumers. - **Toolkit by Undue Medical Debt**: A resource for healthcare providers to assist patients in managing financial concerns related to medical debt. - **CFPB Rule on Medical Debt**: A new rule finalized by the CFPB that excludes medical debt from credit reports, potentially removing $49 billion in medical debt from the records of approximately 15 million Americans. - **California's Medical Debt Legislation**: New law preventing unpaid medical bills from appearing on credit reports, effective January 2024. - **State Initiatives for Medical Debt Relief**: Several states, including North Carolina and Connecticut, are implementing programs to relieve medical debt and improve financial aid for patients. - **Debt Fairness Act in Minnesota**: Legislation aimed at protecting individuals burdened by medical debt, effective October 2024. - **Debt Relief Programs**: Various states are implementing programs to purchase and forgive medical debt, such as Illinois' pilot program targeting low-income residents. - **CFPB's Consumer Advisory**: Guidance issued to help consumers understand their rights regarding medical debt collection. - **Los Angeles County's Public Health Initiative**: Frames medical debt as a public health issue, emphasizing bill forgiveness for low-income patients and the purchase and forgiveness of medical debt. - **CFPB's Proposed Regulations**: Aim to exclude medical debt from credit reports, potentially raising credit scores for individuals with medical debt and facilitating access to loans. - **CFPB Regulations**: Proposed regulations to prevent medical debts from negatively impacting credit scores, aiming to provide significant protections for millions of Americans. - **North Carolina's Medical Debt Relief Incentive Program**: Aims to eliminate $4 billion in medical debt for low- and middle-income patients, with nearly 100 hospitals participating. - **Advocate Health's Debt Forgiveness**: Plans to cancel over 11,500 liens related to unpaid medical bills, part of a broader reform to halt lawsuits and liens as collection methods. - **Illinois Debt Relief Program**: This program has already relieved over $72 million in medical debt for more than 52,000 individuals, with an average debt relief of $1,349. - **Bipartisan Support for Medical Debt Relief**: There is cautious optimism regarding the continuation of medical debt relief initiatives due to bipartisan support, despite potential political changes. - **CFPB's New Regulations**: New rules banning medical debt from credit reports, expected to improve credit scores for millions and increase access to loans. - **Burn Debt, Not Books**: A fundraising campaign launched in Tennessee that raised over $26,000 to erase $2.6 million in medical debt for working-class residents. - **CFPB Proposed Ban**: The CFPB has proposed banning the inclusion of medical debt in credit reports to mitigate its negative impact on consumers' financial situations. - **Debt Forgiveness Initiatives**: Local governments, including Los Angeles County and New Jersey, are implementing programs to purchase and forgive medical debt, reflecting a growing trend to address healthcare-related financial issues. ### Challenges and Concerns - **Impact of Medical Debt on Health**: Patients often delay or forgo necessary medical treatments due to fear of accumulating debt, exacerbating health issues. - **Ongoing Medical Debt Crisis**: Despite new initiatives, medical debt remains a significant issue, particularly among vulnerable populations, including Native Americans, who face higher rates of overdue medical bills. - **Disparities in Medical Debt**: Historically disadvantaged groups are disproportionately affected by medical debt, highlighting systemic inequalities in healthcare access and affordability. - **Impact on Credit Scores**: Medical debt significantly affects credit scores, with nearly 100 million Americans struggling to pay medical bills, leading to financial instability. - **Ongoing Financial Strain**: Despite initiatives, many Americans still face significant medical debt, with 41% of working-age adults burdened by it. - **Loopholes in Legislation**: California's new law allows medical debt from credit cards to still appear on credit reports, potentially undermining its protective intent. - **Long-term Solutions Needed**: Experts emphasize that while debt relief is beneficial, it must be coupled with long-term strategies to tackle the underlying causes of medical debt. - **Impact of Federal Policy Changes**: Concerns exist that potential rollbacks of federal support for healthcare initiatives under new administrations could exacerbate the medical debt crisis. - **Effectiveness of Debt Cancellation**: Studies indicate that canceling medical debt does not lead to significant improvements in financial well-being or mental health, raising questions about the effectiveness of such policies. - **Potential Negative Impact of Legislation**: The Reporting Medical Debt Payments as Positive Consumer Credit Information Act of 2024 may harm consumers by not effectively improving credit scores. - **Underlying Issues of Healthcare Costs**: Experts warn that forgiving medical debt does not address the root causes of rising healthcare costs and financial instability. - **Consolidation of Hospitals**: Research indicates that living in areas with consolidated hospitals may increase the likelihood of accumulating medical debt. - **Political Uncertainty**: Concerns exist regarding potential reversals of medical debt protections under a different administration. - **Opposition from Health Systems**: In North Carolina, powerful health systems raised concerns about the potential impact of medical debt relief initiatives on rural healthcare. - **Opposition to CFPB Regulations**: The CFPB's proposed ban on reporting medical debt has faced opposition from healthcare organizations, raising questions about its feasibility. - **Legal Challenges to CFPB Rule**: Industry groups, including debt collectors and credit unions, have filed lawsuits against the CFPB to block the new rule on medical debt, claiming it oversteps authority and could harm hospitals' debt collection efforts. - **Local Hospital Association's Concerns**: Expressed worries that proposed measures by Los Angeles County could impose unnecessary burdens on hospitals without effectively resolving underlying issues of medical debt. - **Skepticism from Credit Reporting Firms**: Some credit reporting firms express concerns about the CFPB's authority to implement proposed rules and warn that changes could lead to higher upfront costs for patients seeking medical care.