North Carolina Hospitals Join Debt Relief Program

In a significant development for healthcare in North Carolina, Governor Roy Cooper announced on Monday that all 99 eligible hospitals in the state have agreed to participate in a groundbreaking medical relief program. Initially unveiled on July 1, the initiative aims to forgive up to $4 billion in medical debt affecting as many as 2 million residents. Cooper emphasized the program's importance, stating, “This first-in-the-nation program will make a difference in the lives of families across the state,” highlighting that medical emergencies are often unforeseen. The program mandates hospitals to collaborate with organizations such as Undue Medical Debt to ensure effective implementation over the next two years. Hospitals that opted out would have only received a basic level of Medicaid reimbursement, making participation crucial for maximizing support for patients. This initiative, alongside a concurrent Medicaid expansion, is projected to enable the state to access over $8 billion annually from the federal government. Kody Kinsley, director of the state Department of Health and Human Services, praised the program, describing medical debt as a “disease in our health system.” He noted that the commitment from all hospitals to enhance charity care and relieve existing medical debt represents a significant victory for both patients and the overall health landscape in North Carolina. The program targets eligible debts that are at least two years old, with a ten-year look-back period. Hospitals have until July 1 to forgive the debts of Medicaid enrollees, marking a pivotal step in addressing the financial burdens faced by many families in the state.