Pittsburgh City Council passes legislation to discharge medical debt
PITTSBURGH (KDKA) -- Pittsburgh City Council took a step forward toward paying off health care debt owed by residents.
The council passed legislation authorizing the Gainey administration to use $1 million from the American Rescue Plan.
The legislation was introduced by Councilman Bobby Wilson, who proposed the city enter into an agreement with a company to help residents erase their medical debt.
Wilson's first proposal included RIP Medical Debt, which buys qualifying medical debt for pennies on the dollar and then forgives the debt. Last week, City Council amended the bill to allow city officials to issue a request for proposals from qualified vendors to choose from.
City residents who make up to three times the federal poverty guidelines would be eligible, which was tightened from a previous bill that would have capped it at four times the poverty level.
City Council still needs to sign off on any contracts.
"I just want the public to know that this doesn't mean this money is immediately going out the door. In fact, it would have to come back to council for another opportunity for discussion on the details of a contract," said Councilwoman Deb Gross.
Council president Theresa Kail-Smith and Councilman Bruce Kraus voted against the measure.
A similar bill has been proposed in the Pennsylvania state House, citing the ongoing efforts made at the local level in Pittsburgh. The state-level proposal suggests that $5 million in spending could erase more than $575 million in medical debt.
