Toledo modeled their plan after Cook County and partnered with RIP Medical Debt, a nonprofit that buys medical debt from hospitals in bundles at a much lower price. To qualify, Toledo residents will have to earn a household income of less than four times the federal poverty level and have medical debt that is more than 5 percent of their income.
Michelle Grim, a Toledo city council member who advocated for the proposal, said the plan will eliminate between $190 million and $240 million worth of debt. The city will contribute $800,000 in American Rescue Plan funds to the initiative, and the county will contribute another $800,000.
Cook County’s plan was approved in July and will use $12 million in funds to eliminate about $1 billion in medical debt for residents.
