Columbus hospitals relieving $335M in medical debt
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Four regional hospitals are relieving medical debt accrued by hundreds of thousands of Columbus residents, local officials announced yesterday.
Why it matters: Medical debt is a leading cause of bankruptcy in America, with major physical and emotional tolls on patients' health.
What's happening: Mount Carmel Health System, Nationwide Children's Hospital, OSU Wexner Medical Center and OhioHealth are collectively writing off $335 million in debt for care received between 2015-2020.
- Columbus residents are eligible if they earn between 200-400% of the federal poverty line — $55,500-$111,000 for a family of four, city leaders said.
By the numbers: This is expected to impact around 340,000 local residents, the city estimates, with the average amount forgiven coming to nearly $1,000.
How it works: Eligible residents do not have to take any action.
- Letters will soon be mailed out detailing the program and noting how much is forgiven.
- Columbus' public investment of $500,000 will go toward the administrative costs of validating incomes and mailing letters.
State of play: Councilman Rob Dorans tells us Columbus doesn't have the power to restructure America's health care system, but officials can work to make a difference locally.
- Council previously hoped to invest pandemic relief dollars into a nonprofit that works to erase medical debt — a plan used in Toledo and Cleveland — but ultimately decided to work directly with hospital systems to resolve the problem.
Between the lines: Health care providers may have been more inclined to erase this debt, which ranges from three to eight years old, because it may have been difficult to collect at this point, Dorans speculates.
The big picture: Nearly 25% of middle-income earners are saddled with medical debt, Axios recently reported.
- These Americans earn too much to qualify for Medicaid or charity care, but not enough to afford major medical bills.
Yes, but: Fewer low-income residents have medical debt, which may be due to postponing care out of cost concerns.
What they're saying: At a news conference, Council president Shannon Hardin described families waiting out children's illnesses to save money or undergoing unexpected treatment that plunges them into severe debt.
- "No one should have to face the stress or specter of financial ruin just to get the medical care they need to lead happy, healthy and fulfilling lives," Mayor Andrew Ginther agreed.
What's next: Dorans says it's difficult to promise future debt forgiveness agreements, but pledged the city would continue working on aiding residents when possible.