El Medical Debt Relief Program It completed one year in July since its implementation in North Carolina and has helped more than 2,5 million to settle hospital bills that they would otherwise have to continue paying for their entire lives.
This week, the state Department of Health and Human Services (NCDHHS) and Governor Josh Stein announced that more than $6.5 billion in medical debt has been relieved.
“Medical debt is a tremendous burden that keeps so many families from financial security, and unlike most other forms of debt, it’s not an option,” said Governor Josh Stein. “Today’s announcement will free people from financial stress so they can focus on their health.”
What participating hospitals commit to
The Centers for Medicaid and Medicare Services (CMS) approved the use of medical debt policies as a condition of eligibility for North Carolina hospitals receive a better payment level in the Healthcare Access and Stabilization Program (HASP), a program that began at the same time as Medicaid expansion. Neither Medicaid expansion nor HASP required state funding.
To be eligible for enhanced HASP payments, hospitals were required to relieve medical debt for certain low- and middle-income North Carolinians and adopt more generous charity care policies.
In addition, hospitals were required to Strengthen and simplify processes for determining eligibility for charity care/financial assistance and end the reporting of medical debt to credit bureaus.
Which hospitals participate
In the middle of last year, 99 hospitals who have intensive care services in the state have committed to participating in this program.
Who is eligible for medical debt cancellation?
Through the program, the Medicaid members All outstanding medical debts owed to participating hospitals since January 1, 2014, will be mitigated.
Other consumers do not enrolled in Medicaid with incomes at least equal to or less than 350% of the Federal Poverty Level (FPL). Those whose total medical debt owed to a participating hospital exceeds 5% of their income will have all medical debt owed to participating hospitals for more than two years as of January 1, 2014, canceled (exceptions apply to individuals who have a payment plan agreement with the hospital).
Hospitals have the option to participate, so this may not apply to everyone.
What patients should do to have their debt cancelled
Patients don't need to do anything. Participating hospitals will work with a third-party provider to identify outstanding debt for those eligible for the waiver.
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When will patients see their accounts canceled?
Below is the planned timeline for implementing medical debt reduction policies starting in 2024:
• Before October 1, 2024 Hospitals began working to alleviate past medical debt. By March 1, 2025, these hospitals signed an agreement with Undue Medical Debt (or other nonprofit partners) to facilitate full implementation of medical debt relief within the next two years.
• Starting 1 from January of 2025 , patients at participating hospitals were automatically eligible for charity care if they were already enrolled in a public benefits program such as WIC and SNAP, if they were homeless, or if they or a family member waswere enrolled in Medicaid.
• Additionally, beginning January 1, 2025, hospitals implemented policies that qualified individuals for charity care discounts based on their income.
For example, a family of four with incomes up to $62,000 will be eligible for a 100% discount on their hospital bills.
• By July 1, 2025 Participating hospitals had already put a stop to aggressive debt collection practices, such as not selling debts to low-income individuals, limiting interest rates on medical debt, and not allowing medical debt to be the reason for foreclosure or detention.
• And by July 1, 2025 Medical debt from participating hospitals will no longer negatively impact anyone's credit history. This will eliminate barriers to employment, housing, transportation, and the means to support themselves.
• In addition, before July 1, 2025 , participating hospitals canceled the outstanding debt of people enrolled in Medicaid.
More Information
- For more information about Medical Debt Relief Incentive Program , visit the NCDHHS website .
- also can consult the policies of each hospital associated with the medical debt program.
- You can see below a list of the 99 participating hospitals , which includes the state's largest hospital systems.
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