Massachusetts erases over $38 million in medical debt for residents
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The Atrius Health Equity Foundation and the nonprofit Undue Medical Debt are erasing more than $38 million in medical debt for nearly 70,000 residents in Massachusetts.
The nonprofit Undue Medical Debt buys bundles of overdue medical bills for a small fraction of their original value. After acquiring these bills, the organization forgives the debt for patients who meet specific financial eligibility criteria.
Patients do not need to apply for this relief, as the nonprofit automatically selects recipients based on their financial status and the availability of the debt. People who qualify will receive a letter explaining that the nonprofit is canceling their bills, which can range in value from $5 to $86,000. State data shows that medical debt affects one out of every eight residents in Massachusetts. Lower-income households and communities of color experience a disproportionate burden from these costs.
The Atrius Health Equity Foundation aims to use this debt relief to help narrow life expectancy disparities across Eastern Massachusetts. To qualify for forgiveness, a patient's medical debt must represent 5% or more of their yearly income, or their income must fall below 400% of the federal poverty level. For a single person, this income threshold is $63,840, while it is $132,000 for a family of four.
While meeting these criteria is necessary, it does not guarantee that every bill will be erased because the nonprofit must first be able to acquire the specific accounts.
