North Carolina Launches Innovative Medical Debt Relief Program

RALEIGH, N.C. — In a groundbreaking move, federal Medicaid regulators have approved a proposal from North Carolina Governor Roy Cooper’s administration aimed at alleviating medical debt for low- and middle-income patients. The Centers for Medicare and Medicaid Services endorsed the initiative, which is touted as the first of its kind in the nation. The plan is expected to assist approximately 2 million residents in eliminating around $4 billion in medical debt, according to Cooper’s office. The proposal, announced by Cooper and state health officials, focuses on providing financial incentives to hospitals that agree to cancel existing debts and implement policies to prevent future liabilities. State Health and Human Services Secretary Kody Kinsley emphasized that the program not only aims to improve the health and well-being of North Carolinians but also supports the financial sustainability of hospitals. Under the new plan, hospitals will receive enhanced Medicaid reimbursement through the Healthcare Access and Stabilization Program. They will be required to offer significant discounts on medical bills to qualifying patients, automatically enroll them in charity care programs, and refrain from selling debts to collectors or reporting unpaid bills to credit agencies. Vice President Kamala Harris praised North Carolina’s initiative, calling it a model for other states to emulate. While Cooper was previously considered a potential running mate for Harris, he announced he would not pursue candidacy for the upcoming election. Harris had previously urged states and hospitals nationwide to join efforts in forgiving medical debt, highlighting the importance of North Carolina's pioneering approach.