The city’s 2024 budget, approved by the city council, includes more than $1 million in American Rescue Plan funds that could relieve more than $100 million in medical debt, according to the report.
St. Paul Mayor Melvin Carter’s office estimated the plan could benefit 45,000 residents, according to the report. To qualify for relief, residents must live in a household with income up to 400 percent of the federal poverty guidelines or have medical debt that is at least 5 percent of their annual household income.
Several city and county governments are using American Rescue Plan funds to relieve medical debt. Mr. Carter said he sought the advice of leaders from Cleveland, another city which approved a plan this summer that is expected to relieve $181 million in medical debt. As of Nov. 20, Cleveland’s partnership with RIP Medical Debt has erased $33 million in medical debt for 16,000 city residents.
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