Oakland County launches new program to help residents erase medical debt

Oakland County unveils new program to erase medical debt

(CBS DETROIT) - Thousands of residents in Oakland County could have their medical debt erased under a new program using federal funding, officials announced Thursday. 

Oakland County has partnered with RIP Medical Debt, a national nonprofit organization that acquires and erases medical debt for individuals going through financial hardship, to implement the program. 

Through the program, $2 million of Oakland County's American Rescue Plan Act funding to erase up to $200 million in medical debt for residents. 

"No matter what a person's circumstances are, a medical crisis can be devastating for them and their families - physically, financially, and emotionally," said Oakland County Executive Dave Coulter during a news conference at Gilda's Club Metro Detroit in Royal Oak on Thursday, Oct. 19. "We should do what we can to help people who find themselves on the brink of bankruptcy due to a health condition or emergency."  

Residents cannot apply for the debt relief program. The nonprofit will contact them via a branded letter that some or all, of their debt has been canceled and cleared. 

Debt that qualifies to be erased through this program includes debts that belong to individuals who earn less than four times the federal poverty level or for those who have a debt that is five percent or more of their annual income. 

Kyra Taylor, a Michigan resident, had about $3,500 of her medical debt erased through the RIP Medical Debt program. At age 10, she was diagnosed with diabetes, and as a young adult, she didn't have medical insurance coverage and was accumulating debt. 

"Being free from medical debt is a breath of fresh air," Kyra said. "No bothering calls or threatening letters. To be honest, I don't feel overwhelmed anymore and this all happened at the right time." 

For more information about the nonprofit, visit here

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