The state canceling $2B in medical debt

Up to 1 million residents in Arizona may have their medical debt forgiven through a new program the state’s governor announced March 4. 

Advertisement

Arizona Gov. Katie Hobbs said the state has partnered with RIP Medical Debt, a nonprofit that buys and eliminates debt, to cancel approximately $2 billion in residents’ medical debt. Through the partnership, Arizona will make up to $30 million in COVID-19 relief funds available for the nonprofit to use for debt purchasing. 

Residents who earn less than 400% of the federal poverty line or who owe more than 5% of their annual income will be eligible for medical debt forgiveness. 

Officials said this marks the largest state-led effort to erase medical debt in history. 

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.