RALEIGH, N.C. (WBTV) – The U.S. Centers for Medicare and Medicaid Services has approved a plan to reduce up to $4 million in medical debt in North Carolina.
North Carolina Governor Roy Cooper and the state’s Department of Health and Human Services announced the plan on July 1. The approval came on Friday, July 26.
NCDHHS will now work with hospitals to relieve at least a decade of existing debt for North Carolinians who qualify, and prevent the accumulation of more debt for low- and middle-income residents.
[Gov. Cooper, NCDHHS address plan to wipe medical debt for 2 million+ residents]
“Unlike most other debts, medical debt is not intentional because people don’t choose to get seriously ill or have an accident,” said North Carolina Governor Roy Cooper in a press release. “Medical debts are often beyond people’s ability to pay, ruining their credit, keeping them from getting credit cards, loans and jobs and sometimes driving them into bankruptcy. That’s why we’re working with hospitals and federal partners to help relieve the burden of medical debt for North Carolina families.”
The decision to join the program is up to individual hospitals. Those who join the program will get a higher level of Medicaid reimbursement through HASP – the Healthcare Access and Stabilization Program.
The hospitals that do not participate will get the standard amount of HASP funds.
“I applaud North Carolina for setting an example that other states can follow by advancing a plan that has the potential to relieve $4 billion in medical debt for two million individuals and families. This critical step also strengthens financial assistance for emergency medical procedures moving forward,” read a statement from Vice President Kamala Harris in part.
The regulations apply to all patients, regardless of Medicaid or Medicare status.
“Many people struggle with the burden of medical debt, which can cause them to hold off on getting the essential health care and services they need,” said NC Health and Human Services Secretary Kody H. Kinsley in a press release. “This debt relief program is another step toward improving the health and well-being of North Carolinians while supporting financial sustainability of our hospitals.”
This would be the first medical debt mitigation policy of its kind in the country. For more information, click here.
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