More than $6.5 billion in medical debt erased for 2.5 million North Carolinians

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Medical Debt (Photo: MGN)

RALEIGH, NC (WWAY) — Governor Josh Stein and North Carolina Department of Health and Human Services Secretary Dev Sangvai announced that more than $6.5 billion in medical debt has been erased for more than 2.5 million residents through the state’s Medical Debt Relief Program.

Governor Stein said the program’s impact is life-changing for families across the state.

“Medical debt is a tremendous weight keeping so many families from financial security, and unlike most other forms of debt, it’s not a choice,” said Stein. “Today’s announcement will free people from financial stress so they can focus on getting healthy.”

Secretary Sangvai added that easing this debt is an important step toward improving public health.

“Medical debt delays access to care, and easing that burden improves both health and well-being,” Sangvai said. “We are grateful to the hospitals and providers who are helping to give a fresh start to millions of North Carolinians.”

The program was launched in July 2024 and has now surpassed its initial financial projections. It relieves existing medical debt and prevents new debt from accumulating by requiring participating hospitals to adopt more generous charity care policies and end the reporting of medical debt to credit agencies.

According to Undue Medical Debt, which partners with the state on the initiative, all 99 eligible North Carolina hospitals have joined the effort. CEO and President Allison Sesso said the state’s approach could serve as a model for others.

Eligible North Carolinians are being notified directly by mail from their hospitals or Undue Medical Debt when their balances are cleared. At least 255,000 letters are being sent this week, with more to follow in the coming months.

The Medical Debt Relief Program was first developed under former Governor Roy Cooper and NCDHHS Secretary Kody Kinsley. It is the first of its kind in the nation to use Medicaid programs to make large-scale debt relief possible.

Officials say the initiative will continue over the next year as hospitals and Undue Medical Debt work to fully implement relief efforts statewide.

 

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