South Raleigh News

Governor Roy Cooper and Health and Human Services Secretary Kody H. Kinsley announced today that all eligible hospitals in North Carolina have committed to the state's medical debt relief program. This initiative aims to alleviate medical debt for millions of residents, with all 99 eligible hospitals participating.

“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,” stated Governor 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.”

The program includes participation from the largest hospital systems in the state. Hospitals, being significant sources of medical debt, are now taking steps to address this issue through the initiative. The total estimated impact is approximately $4 billion, benefiting nearly 2 million low- and middle-income North Carolinians by relieving over a decade of existing medical debt.

“This is big, sweeping change that will benefit our health care system and the health and well-being of millions of North Carolinians,” said Secretary Kinsley. “It is an innovative approach that was thoughtfully developed with feedback from hospitals and national experts and gets more value from federal dollars. We are leading the way here in North Carolina with a powerful roadmap for other states to improve the health of Americans.”

Hospitals opting into the plan face deadlines for implementing policies aimed at mitigating future debt accumulation. By January 1, 2025, patients enrolled in public benefit programs such as WIC and SNAP or Medicaid, or experiencing homelessness will automatically qualify for charity care. By July 1, 2025, hospitals must forgive past debts of Medicaid beneficiaries and implement policies preventing medical debt from affecting credit ratings or involving aggressive collection practices.

“This multi-faceted, state-wide medical debt relief initiative is truly groundbreaking," said Allison Sesso, CEO and president of Undue Medical Debt. "North Carolina’s approach stands out for its breadth in size and scope... It cannot be overstated what a huge win this is.”

The program leverages state Medicaid funds alongside federal dollars through the Healthcare Access and Stabilization Program (HASP). Participating hospitals will receive enhanced HASP payments estimated at $4 billion this fiscal year with projections reaching $6.3 billion next year.

Hospitals committed to relieving medical debts dating back to January 1, 2014, for Medicaid beneficiaries as well as uncollectible debts for patients earning up to 350% of the federal poverty level. Additionally, any past medical debts exceeding 5% of annual income will also be relieved.

Over the next two years, participating hospitals will collaborate with NCDHHS and non-profit partners like Undue Medical Debt to fully implement these policies. Patients need not take any action to benefit from this program.

Eligible North Carolinians can expect relief within two years. For more information on these efforts refer to updated FAQs on North Carolina's medical debt relief initiatives.

###