Michigan counties are taking significant steps to alleviate the burden of medical debt for their residents, with notable successes already achieved. At least five counties have collaborated with the non-profit organization Undue Medical Debt to address this issue.
These counties, including Wayne and Oakland, have successfully eliminated approximately $36 million in medical debt, potentially benefiting tens of thousands of residents. Other counties such as Ingham, Kalamazoo, and Muskegon have implemented similar initiatives with Undue Medical Debt, previously known as RIP Medical Debt.
Karley Abramson, a researcher at the Citizens’ Research Council of Michigan, acknowledges the positive impact of these debt forgiveness programs. However, Abramson also emphasizes the need for proactive measures to prevent the accumulation of medical debt in the first place, a strategy adopted by some other states in the Midwest.
According to Abramson, “It’s a piece that is helpful. It’s a piece that is probably needed, but it is only going to do so much on its own.” She advocates for policies that encourage affordable payment plans, cap interest rates, and restrict aggressive collection practices related to medical debt.
Although Michigan has recently allocated $4.5 million to support medical debt forgiveness efforts, Abramson points out that the state lacks comprehensive policies to regulate medical debt. Efforts to implement such regulations could face resistance from hospitals and the insurance sector, making legislative progress in Lansing challenging.
Abramson underlines the unique nature of medical debt, stating, “Medical debt is fundamentally different than other consumer debt. This is not a choice for a lot of people. This is not a luxury.” The pervasive consequences of medical debt, she argues, necessitate policy attention due to its profound effects on individuals’ financial stability and overall well-being.
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