The New Orleans City Council included a line item in the city's 2023 budget aimed at eliminating up to $130 million in medical debt, the Louisiana Illuminator reported Jan. 2.
The city's budget allocates $1.3 million in federal American Rescue Plan Act funds to eliminate the debt in partnership with RIP Medical Debt, according to the report.
To qualify for medical debt relief, residents must earn less than four times the federal poverty level, or their debt must be 5 percent or more of their annual income, according to the report.
The city's contract with RIP Medical Debt has not been finalized, but the goal is to reach an agreement early this year, New Orleans City Council President Helena Moreno's chief of staff told the news outlet.