$38 Million in Medical Debt Erased for 70,000 Massachusetts Residents
Medical Debt Relief Arrives for Thousands of Massachusetts Residents
Nearly 70,000 Massachusetts residents are receiving over $38 million in direct medical debt relief this week through a partnership between the Atrius Health Equity Foundation, the Massachusetts Health & Hospital Association, and the nonprofit Undue Medical Debt, The Boston Globe reported.
The latest wave brings the total amount erased through the collaboration to more than $293 million since it began in 2024, according to the groups. Relief amounts range from $5 to $86,000, primarily targeting low- and moderate-income earners in Eastern Massachusetts. State data indicate that one in eight residents carries medical debt, with lower-income households and communities of color facing the heaviest burdens.
Nearly 70,000 Massachusetts residents can breathe a little easier this week when $38 million of medical debt is wiped out thanks to a partnership between multiple nonprofits, the groups said. https://t.co/thdpgG7y9A
Automatic Selection Replaces Applications
Qualifying residents do not need to apply or request assistance. The initiative automatically selects patients based on income criteria when their past-due accounts are acquired from hospitals, collection agencies, or other medical providers.
Patients are eligible if their medical debt equals 5 percent or more of their annual income, or if they earn at or below four times the federal poverty level. That threshold stands at $63,840 a year for an individual and $132,000 for a family of four. Recipients will begin receiving letters in the mail this week notifying them that specific debts have been canceled, with no action required on their part.
Undue Medical Debt Erases Billions in Medical Debt
Undue Medical Debt acquires large portfolios of past-due medical accounts for pennies on the dollar after providers make good-faith collection efforts. Founded in 2014, the organization has erased nearly $50 billion of medical debt for more than 31 million families nationwide.
“For too many patients, an unexpected illness or medical emergency can create financial hardship that lasts long after they leave the hospital, ER or doctor’s office,” said Allison Sesso, head of Undue Medical Debt, in a statement provided to Boston.com. Dr. Ann Hwang, president of the Atrius foundation, noted that medical debt not only affects long-term financial security but also makes individuals reluctant to seek necessary care.