Strategic Grants to Alleviate Medical Debt in Eastern MA
Background:
The Atrius Health Equity Foundation aims to close the gap in life expectancy across neighborhoods in Eastern Massachusetts. Medical debt hurts families economically and impedes access to care. What’s more, it disproportionately affects communities of color. With 1 in 8 Massachusetts residents facing the burden of medical debt, we are dedicating nearly $10 million to alleviate medical debt in Eastern Massachusetts. With this funding, we aim to acquire (and relieve) nearly half a billion dollars in debt, on behalf of low and middle income residents of Eastern Massachusetts.
Under this initiative, the Foundation is making grants to:
RIP Medical Debt (RIP), a national non-profit organization that acquires and abolishes medical debt for people experiencing financial hardship. RIP was founded in 2014 and has since acquired and abolished $10 billion in medical debt for 6.8 million individuals. RIP acquires debt from hospitals and health care providers for the sole purpose of abolishing it. RIP Medical Debt will receive up to $5.5 million to acquire and abolish existing medical debt for all residents of Eastern Massachusetts below 400% of the Federal Poverty Line.
Health Law Advocates (HLA), a non-profit public interest law firm in MA whose mission is to provide pro bono legal representation to residents in low-income situations experiencing difficulty accessing or paying for needed medical services. HLA has been the state’s leading provider of pro bono legal assistance for clients with medical debt. HLA directly represents consumers who are being pursued by providers and collectors for unaffordable medical bills. The Foundation’s grant supports HLA to increase multilingual legal services for consumers to resolve medical debt.
Health Care For All (HCFA), a non-profit organization and the leading state-wide consumer health advocacy organization in Massachusetts. HCFA runs the statewide HelpLine to help consumers with health insurance enrollment and questions. HCFA is actively engaged with over 40 local culturally and linguistically diverse community-and faith-based organizations. Foundation funding supports HCFA in working with a diverse set of stakeholders, including grassroots organizations, to develop and secure policy solutions to permanently reduce the burden of medical debt in Massachusetts.
Financial Opportunity Centers: $1 million is reserved to support financial services organizations in communities of color to expand the availability of services for consumers facing medical debt.
How It Works:
RIP Medical Debt uses data analytics to pinpoint the debt of those most in need.
They then buy, or receive via donation, the debt from hospitals and other health care providers in large, bundled portfolios at a fraction of the original debt’s face value; on average one donated dollar erases $100 of medical debt. Once the debt is acquired, patients receive a letter informing them that their debt has been erased with no penalties – instead of a letter from a collections company or another bill from the provider. Debts reported to credit bureaus are removed and there are no tax consequences for the recipient.
Debt relief is source-based, meaning it cannot be requested. Recipients are qualified based on income and don’t need to apply; instead, they’re notified with a RIP Medical Debt branded letter in the mail sharing the good news. A forthcoming announcement will notify the community when debt relief letters are on their way.
The $1 Difference
One in eight Massachusetts residents faces the burden of medical debt. More than 20% of those with medical debt are Black, compared to 13% White. Medical debt can be abolished at pennies on the dollar. Just $1 of contributed funds can retire over $100 worth of debt.
Local initiatives have the chance to wipe out medical debt and reduce racial inequities.
Learn more about our plan in this Boston Business Journal article (2024).
FAQs:
I have medical debt. Can I apply for relief?
Unfortunately, no. RIP Medical Debt cannot relieve debt for specific individuals. RIP Medical Debt works by acquiring large portfolios of debt to help thousands of people at once.
How can I learn more about medical debt?
These webpages have resources and information:
I have medical debt. How can I get legal help?
How Can I help?
If you are a hospital or health care provider who would like to donate or sell your medical debt, please contact RIP Medical Debt (https://ripmedicaldebt.org/hospitals/) or email us at the Foundation at info@atriusfoundation.org.
If you are an individual or organization who would like to support the campaign to reduce medical debt, please email Ashley Blackburn at Health Care For All.
If you are a funder who would like to join us in purchasing and abolishing debt, please contact the Foundation at info@atriusfoundation.org.