Article Summary –
Michigan lawmakers have allocated $4.5 million for a pilot medical debt relief program. The funds, which will be administered with the help of RIP Medical Debt, a national nonprofit, will be provided directly to local governments to assist residents. To qualify, residents must be at or under four times the federal poverty level, or their medical debt must be 5% or more of their annual income.
New Medical Debt Relief for Michigan Residents
Michigan state lawmakers have announced a pilot medical debt relief program, aiming to alleviate the medical debt burden on many residents. Through a one-time funding of $4.5 million allocated in the 2024 fiscal year state budget, and in partnership with RIP Medical Debt, the funding will be provided directly to local governments for residents’ support.
Healthcare Affordability in the US
At a press conference on March 20, state lawmakers and community leaders addressed healthcare affordability in the US and the benefits of medical debt relief. With the high cost of healthcare, an estimated 100 million people nationally are struggling with medical debt, even those insured.
Medical Debt Relief in Progress
RIP Medical Debt is already collaborating with Oakland County and is planning contracts with Wayne, Kalamazoo, and Ingham counties. The state’s initial $4.5 million has increased to about $450 million with additional funding, a total projected to help alleviate medical debt for nearly 180,000 Michiganders.
Eligibility for Medical Debt Relief
Eligible residents must earn at or below four times the federal poverty level or have medical debt equal to 5% or more of their annual income. According to Oakland County deputy county executive Madiha Tariq, the fear of medical debt can worsen disease burden as people may delay necessary medical care and deepen poverty cycles.
State Budget and Medical Debt Relief
The 2024 state budget, the largest in state history due to a revenue surplus and federal dollars, targets lifting people out of poverty. Michigan Senate Appropriations Committee Chair Sarah Anthony emphasized the moral aspect of budgets, saying, “People should not have to choose between necessary healthcare and food for their families. Relieving families of medical debt allows them to not just survive but thrive in our state.”
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