Article Summary –
North Carolina faces a severe medical debt crisis, but Gov. Cooper’s new program aims to relieve debt for millions by leveraging expanded Medicaid. The initiative, supported by all state hospitals, promises $4 billion in debt forgiveness. Despite initial resistance, the plan is progressing, offering hope to impacted residents.
North Carolina Faces Severe Medical Debt, Roy Cooper Offers Potential Relief
Imagine hospitals suing patients for life-saving treatments they can’t afford. Picture a system threatening widows’ homes, leaving cancer patients unable to survive financially.
This is the reality of the U.S. medical debt crisis, severely affecting North Carolinians. According to Kaiser Health Network, the nationwide debt exceeds $220 billion, with North Carolina among the worst.
A 2022 study by the Urban Institute revealed 20% of residents were in collections. Though recent data shows a drop to 8%, this is attributed to changes in credit recording, not a genuine decrease in medical debt.
Kaiser estimates indicate up to 3 million adults in North Carolina carry medical debt. The financial and physical burdens are immense, but solutions are emerging.
The ‘Horror Stories’
These stories are more than just data. They involve real heartbreak. A 2023 study highlighted patients like a cancer survivor who can’t move due to a lien on her home, or a 70-year-old unable to retire because of a $192,385 lien.
Dr. Howard Mell notes patients refusing urgent care due to costs. Hospitals sued over 7,500 patients, according to the NC Treasury report. AdvocateHealth alone placed liens on over 11,000 homes.
The Problem
- Rural hospitals lack ambulances, using costly air-transport.
- Errant bills and surprise fees catch patients off-guard.
- Medical giants acquiring private practices increase costs.
- Credit card partnerships lead to high-interest payment plans.
- Affected most are lower-income and communities of color.
Possible Solutions
- The Biden-Harris administration offers plans easing medical debt burdens.
- In July, Gov. Roy Cooper announced Medicaid expansion to forgive $4 billion in debt.
- All 99 eligible hospitals agreed, preventing new debt and simplifying low-income patient enrollment.
“Medical debt feels like a disease on the healthcare system itself,” said Jonathan Kappler of the NC Department of Health and Human Services, noting nearly 2 million North Carolinians will benefit without any patient legwork. Hospitals initially resisted, but the plan proceeded with support from state and federal officials, aiming to center community well-being.
Political Dynamics
“Multibillion-dollar health systems fought the medical debt plan,” KFF Health News reported. Despite fears of collapsing rural care, Cooper and Kinsley pushed forward, securing CMS approval. The plan emphasizes hospital accountability.
Medical Debt De-Weaponization Act
In 2023, a bipartisan Senate bill aimed to cap expenses and protect families, but lobbying efforts halted its progress. WBTV found over $200,000 in political donations influenced the bill’s fate. Despite resistance, Cooper’s Medicaid expansion marks a significant step toward resolving the crisis.
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