North Carolina’s medical debt relief program has erased about $6.5 billion in debt for 2.5 million residents, surpassing its original goal by $2.5 billion. Gov. Josh Stein announced the milestone Monday, crediting the initiative launched by former Gov. Roy Cooper for using Medicaid funding to incentivize hospitals to forgive uncollectible debt.
The program requires hospitals to expand charity care policies and cease reporting medical debt to credit agencies in exchange for higher payments through Medicaid’s Healthcare Access and Stabilization Program. “Nobody chooses to have a heart attack or chronic illness,” Stein said, adding that medical debt “holds people back from opportunity and a better life.”
The North Carolina Department of Health and Human Services partnered with the nonprofit Undue Medical Debt to notify affected residents, with more than 250,000 letters being sent this week confirming balances have been cleared. Officials said the model is designed to prevent future debt rather than serve as a one-time fix.
Stein called for renewed federal subsidies and additional state Medicaid funding to further improve access to care.
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