South Raleigh News

North Carolina Governor Roy Cooper and NC Health and Human Services Secretary Kody Kinsley provided an update at Care Ring in Charlotte on their plan to incentivize hospitals to relieve medical debt for millions of low- and middle-income North Carolinians. Participants discussed the impact of relieving up to $4 billion in medical debt for state residents, with a particular focus on Mecklenburg County.

“Unlike most other debts, medical debt is not a choice. It is often a constant weight on many low- to middle-income people that ruins their credit, keeps them from getting jobs, loans and credit cards, drives them into bankruptcy and discourages them from getting preventive health care they need,” said Governor Cooper. “This first-in-the-nation plan incentivizes hospitals to forgive medical debt, making our families and communities healthier and stronger.”

More than 137,000 people in Mecklenburg County are eligible for medical debt relief under North Carolina’s newly approved relief incentive program. If every hospital in the state participates, the program will address nearly $3.4 million in existing medical debt in Mecklenburg County alone.

“Medical debt is a disease in our health system. Relieving this debt can lead to healthier individuals and a stronger health system overall,” said Secretary Kinsley. “The financial burden and fear of medical debt – a debt no one ever chooses to have – makes people avoid getting the essential and preventive care they need. Meanwhile, hospitals spend too much chasing pennies on the dollars they’ll likely never collect.”

The burden of medical debt impacts not only North Carolinians and their families but also the financial sustainability of the state’s healthcare system. While hospitals are not the only source of medical debt, they are the largest holders. North Carolina hospitals hold more than $4 billion of such debt according to estimates.

Governor Cooper and NCDHHS recently announced approval by the U.S. Centers for Medicare & Medicaid Services (CMS) to leverage the state’s Medicaid program to incentivize hospitals to relieve medical debt and implement policies to prevent future accumulation of such debts. Participating hospitals will receive higher levels of Medicaid reimbursement under the Healthcare Access & Stabilization Program (HASP), bringing billions of additional federal dollars into the state.

North Carolina hospitals that choose not to participate in this incentive program remain eligible for base HASP payments.

“As an organization dedicated to ending the undue burden of medical debt, we're thrilled to see North Carolina leadership addressing this issue through an approach that both relieves past debts and prevents future ones," said Allison Sesso, CEO & President of Undue Medical Debt. "Hospitals want their communities to thrive, and I'm heartened by those providers who have expressed their support for this initiative."

NCDHHS is partnering with Undue Medical Debt as a preferred facilitator of this relief effort across the state. Hospitals have until Friday, Aug 9, 2024, to opt into the program.

Care Ring is a nonprofit organization dedicated to providing health services for uninsured or underinsured individuals or those lacking access to affordable healthcare. The organization serves more than 7,600 people annually in Mecklenburg County.

Additional information is available regarding efforts related to relieving medical debt in North Carolina.

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