RALEIGH, NC – August 7, 2024 – On last week’s health report, I discussed how every hospital in North Carolina will forgive medical debt. This was in response to Governor Cooper’s recent initiative to increase federal payments to participating NC hospitals who agree to forgive medical debt for low- and middle-income patients. Here’s a press release summarizing his initiative: https://governor.nc.gov/news/press-releases/2024/08/12/north-carolina-hospitals-sign-relieve-medical-debt
In response to a deluge of questions about this new state initiative, I have decided to repeat this health report and include some more information for those people who want to better understand the program.
Each of the state’s 99 hospitals have signed up for a new state program to reduce medical debt. On July 1st, Governor Cooper announced an initiative to increase federal payments to participating hospitals who agree to forgive medical debt for low- and middle-income patients. The sign-up deadline for hospitals was August 9th. The medical debt program is believed to be the first of its kind in the United States. Uncollectible medical debt dating back to 2014 will be forgiven.
Our local hospitals, Mission Hospital, AdventHealth Hendersonville, and Pardee Memorial Hospital have signed on. The complete list of hospitals is on a hyperlink in the press release.
There is a medical debt crisis in North Carolina. According to 2022 credit bureau data analyzed by the Urban Institute, a nonprofit organization that shapes economic and social policy through research, 20% of North Carolina’s residents has medical debt in collections, the fourth highest state in the country. Black and Hispanic persons and people living in rural areas are disproportionately affected by having medical debt.
The medical debt program will be funded by federal money coming from the Healthcare Access and Stabilization Program, or HASP, because the state Medicaid program shifted to managed care. It is estimated that 2 million low- and middle-income North Carolinians will have $4 billion of medical debt forgiven.
A list of frequently asked questions is at this website: https://www.ncdhhs.gov/medicaldebt Former patients do not have to take any action now, because the hospitals will work with a third-party vendor to identify who is eligible for relief.
Listen to the full report below:
Contact: Dr. Dick Needleman, Health reporter, 103.3 AshevilleFM, healthyasheville@ashevillefm.org