Cities Buying and Forgiving Millions in Medical Debt, Bringing Relief and Spotlighting Calls for Wider Cancellation
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Amber Clapsaddle was overjoyed to have $1,500 of medical debt canceled after her city bought and forgave debt. This relieved years of financial anxiety for her family.
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Cities, states, and others have wiped out $418 million in medical debt so far through initiatives to purchase and forgive outstanding bills. This momentum could bolster proposals for nationwide debt cancellation.
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Medical debt drives many bankruptcies and deters people from seeking care. Canceling it provides financial relief and removes barriers to treatment.
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The first local debt cancellation program launched in Cook County, Illinois in 2021 using federal pandemic aid. The concept spread as municipalities recognized the “bang for buck” in terms of helping residents.
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Critics question whether canceling unpaid debt makes financial sense. But proponents say it has real impact for struggling households and can highlight the wider problem of unpayable healthcare bills.