Governor Stein Highlights Medical Debt Relief efforts, Calls for lower Healthcare Costs
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Today Governor Josh Stein and North Carolina Department of Health and Human services Secretary Dr. Dev Sangvai hosted a roundtable discussion in Greenville to learn about the impacts of medical debt relief on North Carolinians. Governor Stein also called on the North Carolina General Assembly to join him in working to bring down health care costs.
“As the health care costs continues to rise, our state should be focused on reducing people’s burdens, not piling them on,” said Governor Josh Stein. “I am proud of our work to reduce medical debt so we can strengthen people’s health and our state’s economy.Let’s keep working to make health care more affordable for all North Carolinians.”
“Care should be accessible and healing, not a source of financial distress,” said NC Health and Human Services Secretary Dr. Dev Sangvai. “I know how critical it is indeed for patients to seek help early. By relieving medical debt, we are strengthening the health of our communities and ensuring cost is not a barrier to health.”
continuing his efforts to protect North Carolinians from the burden of health care costs, this month Governor Stein called on the three major national credit reporting agencies – Experian, Equifax, and TransUnion – to publicly reaffirm their commitment to excluding certain medical debts from credit reports.Governor Stein also emphasized the importance of removing medical debt from consumers’ credit histories altogether. Click here to read the letter. recently, Governor Stein also joined WakeMed for its Whole Health Campus Groundbreaking, which is bringing a 150-bed mental health and well-being hospital and a 45-bed acute care hospital to Garner.
Last month, Governor Stein announced $28 million in grants to support behavioral health and substance use disorder services.
North Carolina’s Innovative Program Relieves Medical Debt for Thousands
North Carolina is leading the nation wiht a groundbreaking program to alleviate medical debt for its residents. Launched under former Governor Roy Cooper and continued under current leadership, the initiative is the first of its kind to directly utilize state Medicaid funds to purchase and forgive medical debt. As of November 2023, the program has already forgiven over $800 million in medical debt for nearly 175,000 households across the state. North Carolina Department of Health and Human Services
how North Carolina’s Medical Debt Relief Program Works
The program partners with RIP Medical Debt, a non-profit institution that purchases debt for pennies on the dollar from hospitals and other healthcare providers. North Carolina then provides funding through its Medicaid program to RIP Medical Debt,who then abolishes the debt for eligible residents. RIP Medical Debt
This approach differs from traditional debt relief programs in several key ways:
* Proactive Approach: Rather of waiting for individuals to apply for assistance, the state proactively identifies and forgives debt.
* Medicaid Funding: Utilizing Medicaid funds allows the state to address a critically important social determinant of health – financial stability – and improve overall health outcomes.
* Targeted Relief: The program focuses on households with low incomes and those facing financial hardship.
The Impact of Medical Debt in North Carolina
Medical debt is a widespread problem in the United States, and North Carolina is no exception. It can lead to:
* Financial Strain: Forcing families to make challenging choices between healthcare, housing, food, and other essential needs.
* Credit Score Damage: Negatively impacting credit scores, making it harder to secure loans, rent an apartment, or even get a job.
* Increased Stress and Anxiety: Contributing to mental health challenges.
* Delayed Care: Discouraging individuals from seeking necessary medical attention due to fear of accumulating further debt.
By addressing this issue, North Carolina aims to improve the financial well-being of its residents and promote better health outcomes.
Continued Commitment to Healthcare Access
Governor Roy Cooper initially launched the program in 2022, recognizing the significant burden medical debt places on North Carolina families. Current Governor Josh stein and the North Carolina Department of Health and Human Services (NCDHHS) are continuing this commitment.
“Medical debt is a huge weight on families’ shoulders, and it forces them to make unfeasible choices,” said Governor Stein. Governor Stein’s Statement “This program is a smart investment in the health and financial well-being of our people.”
NCDHHS emphasizes its dedication to addressing social determinants of health,increasing access to preventative care,and removing barriers to healthcare for all North Carolinians.
Key Takeaways:
* North Carolina is the first state to use Medicaid funds to purchase and forgive medical debt.
* The program has already forgiven over $800 million in debt for nearly 175,000 households.
* The initiative aims to improve financial stability and health outcomes for residents.
* The program partners with the non-profit RIP Medical Debt to identify and abolish debt.
* Governor Josh Stein and NCDHHS are committed to continuing and expanding this innovative program.
Frequently Asked Questions (FAQ)
Q: Who is eligible for medical debt relief through this program?
A: Eligibility is determined by RIP Medical Debt based on criteria set by the state, generally focusing on low-income households and those facing financial hardship. Individuals do not need to apply; they will receive a notice if their debt has been forgiven.
Q: What types of medical debt are eligible?
A: The program targets debt from a variety of healthcare providers, including hospitals, doctors’ offices, and other medical facilities.
Q: How is the program funded?
A: The program is funded through North Carolina’s Medicaid program.
Q: Where can I find more information?
A: you can find more information on the North Carolina Department of Health and Human Services website and the RIP Medical Debt website.
This program represents a significant step towards a more equitable and accessible healthcare system in North Carolina. By addressing the financial burden of medical debt, the state is investing in the health and well-being of its citizens and paving the way for a healthier future.