Toledo, OH

Medical Debt Relief for Thousands of Americans Worth Up To $240 Million

Aneka Duncan

Financial relief is on its way for thousands of Ohio residents. Through the American Rescue Plan Act (ARPA), the state will be spending approximately $240 million. This money is aimed towards helping residents that are in medical debt. The state is working with a nonprofit organization that will buy and wipe out the debt. Supporters of this method believe that if other states adopt this strategy, it will help to alleviate the medical debt crisis across the country. (source)

The city council of Toledo is working with Lucas County commissioners to eliminate approximately $190 to $240 million in debt for its residents. Earlier in November, the city council approved $800,000 in funding through the American Rescue Plan Act to assist with this program. Lucas County is also contributing $800,000 in ARPA funds. (source)

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Michele Grim is the Toledo City Council member who made this proposal. She estimates that up to $240 million in debt for eligible residents will be eliminated. To qualify, household income must be less than four times the federal poverty level and medical debt should be more than 5 per cent of the income. She made the following statements. (source)

"Our effort follows in the footsteps of @ToniPreckwinkle's Cook County Medical Debt Relief Initiative."
"Which is devoting $12 million in federal recovery funds to relieve up to $1 billion in debt."

Medical debts are purchased in bundles at a much lower price than the actual amount of the debt. Grim said she became aware of RIP Medical Debt on the John Oliver's Last Week Tonight show. She said the following. (source)

"RIP buys debt from healthcare providers and on the secondary market for pennies on the dollar and then instead of attempting to collect, they simply cancel it."

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Disclaimer: This article is only for educational and informational purposes. It is in no way advice at all, please seek professional help before making any decisions. The post got written based on accredited news sources.

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