Access Health And RIP Medical Debt Extinguish $ 25 Million In Muskegon County Residents' Medical Debt

RIP Medical Debt, a private Long Island City 501(c)(3) charity, provided a $ 25 million grant to Access Health which will be used to extinguish the medical debt of 40,000 Muskegon County residents:

https://www.mlive.com/news/muskegon/2023/06/25m-in-medical-debt-erased-for-40000-muskegon-county-residents.html

$25M in medical debt erased for 40,000 Muskegon County residents
By Lynn Moore | June 05, 2023

MUSKEGON COUNTY, MI – More than 40,000 people in Muskegon County are free of a combined $25 million in medical debt thanks to a national nonprofit partnering with a local health agency.

Access Health in Muskegon teamed up with the New York-based RIP Medical Debt to erase medical debt for local residents who are in financial need.

Muskegon was one of two communities in the nation chosen for the massive debt relief after Access Health was selected for a grant program exploring the community impacts of medical debt.

RIP provided the debt relief as part of its nationwide program to free individuals of the debt that is believed to prevent them from seeking health care.

“It was incredibly gracious of them,” Access Health Director of Community-Based Services Samantha Cornell told MLive/The Muskegon Chronicle. “Absolving the medical debt is incredible … and it’s had a great impact.”

RIP uses funds donated from individuals, corporations, foundations, faith groups and government to purchase debt from hospitals, physician groups and debt collection agencies. The debt is purchased in bundled portfolios for significantly less than their face value, thereby allowing donors to convert each $1 in contributions into $100 in debt relief.

Working with local hospitals and medical providers, RIP focused debt relief on Muskegon County residents who earn up to four times the federal poverty rate and whose medical debt is 5% or more of their gross annual income, according to a press release.

Letters were mailed in May to those randomly selected to have their debt erased.

“Medical debt abolishment is random and is based on qualifying accounts that RIP is able to acquire from providers or debt buyers,” the press release states. “Medical debt relief cannot be requested.”

In 2022, nearly one in five people in Muskegon County had an average of $467 of medical debt in collections, according to the Urban Institute.

The debt relief was provided in Muskegon as part of Access Health’s participation in the grant program through Communities Joined in Action, which is a nationwide collaborative of health organizations dedicated to reducing the costs of health care and improving access to it. Access Health has been a member of Communities Joined in Action for “decades,” Cornell said.

In addition to the debt relief, RIP is joining with Access Health to better understand who is at risk of medical debt and to test and expand solutions to address it.

During the two-year program, the partners will explore “the root cause … and solutions to avoid debt in the first place,” Cornell said.

They also intend to increase understanding of health plan selection among residents, employers and public officials, and to promote understanding of how medical debt can impact families.

A forum on medical debt and affordability is planned for this summer.

Access Health was established in Muskegon County in 1999 with a mission to provide affordable health insurance to those who don’t qualify for Medicaid. It offers a health benefit plan with affordable premiums, no deductibles and low co-payments; costs are even lower for those who agree to use a health coach and take health education classes.

It also is working with the state on local initiatives to address health inequities, coordinate health care and study the impact of costs on selection of health care plans.

“National data tells us that people are avoiding timely medical care because of these cost barriers,” Access Health President Jeff Fortenbacher said in a prepared statement. “Avoiding medical care can result in serious risk to a person’s health and well-being.

“This partnership with RIP aligns perfectly with the legacy work of Access Health – to give consumers relief from high costs and debt and to shine a light on this growing national issue here in our own community.”

RIP Medical Debt was formed as a nonprofit organization in 2014 by two former debt collectors and has erased more than $8.5 billion in medical debt.

RIP works with community partners on debt relief programs across the country. Currently, Bethel United Church of Christ is working to raise $40,000 so that it can work with RIP to eliminate $4 million in debt among Michiganders.

Similarly, Midland Area Interfaith Friends and St. John’s Episcopal Church in Midland are in the midst of a $40,000 fundraising campaign so they can work with RIP to eliminate $4 million in medical debt among those who live in mid-Michigan and elsewhere.

In 2019, Grand Rapids First Church worked with RIP to eliminate $1.8 million in medical debt for 1,900 families in Kent, Ottawa, Allegan and Ionia counties.