WILMINGTON, N.C. (WECT) – All eligible hospitals in North Carolina have signed on to the state’s plan to relieve medical debt for almost two million people, per an announcement from Governor Roy Cooper’s office on Aug. 12.
The hospitals participating include Novant Health New Hanover Regional Medical Center and other Novant facilities, Dosher Memorial Hospital, and Columbus Regional Healthcare.
The state estimates the impact as about $4 billion, with almost two million low to middle-income residents having over a decade of debt relief.
“Medical debt is not a choice, and it’s monumental to have North Carolina hospitals committing to be part of eliminating medical debt for their patients,” said Cooper. “By joining this first-in-the-nation solution they are raising the bar for health care, and together we will make a life-changing difference for our families and our economy.”
These hospitals now have to meet deadlines to implement the program and change policies to reduce the accumulation of debt. By the beginning of 2025, patients enrolled in WIC, SNAP, Medicaid, or those experiencing homelessness will automatically qualify for charity care. By July 1, 2025, the state says hospitals will forgive past debt of people on Medicaid, have policies in place to make sure medical debt does not impact their credit rating, and curb aggressive debt collection practices like debt sales and excessive interest rates.
“This multi-faceted, state-wide medical debt relief initiative is truly groundbreaking. North Carolina’s approach stands out for its breadth in size and scope, benefiting North Carolinians across the entire state AND impressively, addressing medical debt both pro- and retrospectively,” said Undue Medical Debt CEO and president, Allison Sesso. “It is heartening to see so many hospitals engaged and ready to join the state in this pioneering endeavor to address this problem head-on. It cannot be overstated what a huge win this is.”
The program leverages the state’s Medicaid program and federal funds via the Healthcare Access and Stabilization Program to encourage hospitals to relieve the debt and prevent debt accruing like this in the future.
“By signing on to the plan, hospitals have committed to relieving medical debt dating back to Jan. 1, 2014, for all Medicaid beneficiaries, as well as medical debt deemed uncollectible for all patients whose income is at or below at least 350% of the federal poverty level. Past medical debt that exceeds 5% of a person’s annual income will also be relieved,” the announcement states.
Copyright 2024 WECT. All rights reserved.