South Raleigh News

Today, Governor Roy Cooper visited Trinity Moravian Church to learn more about their efforts in relieving medical debt through the Debt Jubilee Project. The visit included a roundtable discussion aimed at understanding how recent actions to relieve medical debt could benefit millions of North Carolinians. Participants in the roundtable included representatives from Undue Medical Debt, NC Department of Health and Human Services leadership, and an individual who has benefited from debt relief.

While the Debt Jubilee Project has supported thousands of North Carolinians in the Triad area, approximately 90,000 people in Forsyth County have over $2 million in combined medical debt. In the broader Triad area, around 400,000 individuals hold nearly $10 million in medical debt.

“Today I heard the inspiring story of a community that has come together to help relieve the tremendous burden of medical debt for thousands of North Carolinians,” said Governor Cooper. “But they would be the first to tell you that this job is too massive without a lot more help. The actions that we have taken to encourage hospitals to relieve debt for millions of people is the right thing to do for the health of North Carolina families and our state.”

On July 1, Governor Cooper and NCDHHS announced new actions leveraging the state’s Medicaid program to encourage hospitals to relieve a potential $4 billion in existing medical debt for approximately two million low- and middle-income North Carolinians and ease future burdens.

“As we strive for a healthier North Carolina, we know people with medical debt often delay preventative care and needed treatment for illness or injury,” said NC Health and Human Services Secretary Kody H. Kinsley. “These actions will lessen the emotional and financial burden for families, provide hospitals with more resources and strengthen the health and wellbeing of all North Carolinians.”

NCDHHS submitted a request to the U.S. Centers for Medicare and Medicaid Services (CMS) seeking approval for conditions hospitals must meet to receive enhanced Medicaid funds. These conditions include relieving existing medical debt and establishing policies to prevent its accumulation among low- and middle-income residents.

Once approved by CMS, hospitals implementing these medical debt relief policies will be eligible for enhanced payments under the Healthcare Access and Stabilization Program (HASP). Hospitals not adopting these policies will receive HASP payments at a lower level. These measures aim to provide relief through forgiveness of existing debts, establish protections against future accumulation of medical debts, and prevent problematic collection practices.

Medical debt is an increasing burden across the United States; up to 41% of US adults are estimated to have some form of it. North Carolina hospitals currently hold an estimated total exceeding $4 billion in such debts but often recover only a small fraction through collections practices. NCDHHS has partnered with Undue Medical Debt as its preferred facilitator for medical debt relief efforts.