CLEVELAND — Some people living in the city of Cleveland will soon see significant relief from their medical debts. City Council approved $1.9 million of federal money to help wipe about $200 million in debts. Here’s how that will work, what you should expect in the mail, and what concerns there are about using federal money in this way.
We don’t just report the initial story—we follow through to its conclusion. Read and watch our previous reporting on this story below.
“There is no ward that won’t feel this impact,” said Cleveland City Councilman Kris Harsh during Monday night’s council meeting. Council has approved the city to enter into a contract with RIP Medical Debt that will actively seek out medical debts that area hospital systems have.
“Increasingly over the last few years, we’ve really been engaging hospitals directly. And so we buy the debt directly from the hospitals,” said the CEO of RIP Medical Debt Allison Sesso.
FINDING WHO IS ELIGIBLE
RIP will use zip code tracking to verify only Cleveland residents will receive the medical debt relief. The income requirements are people facing 400% of the poverty level or lower or Clevelanders whose debt is 5% or more of their income.
“To be able to close this gap for so many people that are 400% of the poverty level or below, and give them an opportunity to relieve that pressure of having that medical debt, I think is very critical and important,” said Cleveland City Council President Blaine Griffin.
“That debt can become such a weight on your shoulders,” said Councilman Charles Slife. He told us people should start seeing letters in the mail with signatures from the city and from RIP Medical Debt sometime later in the summer or the fall stating their debt has been eliminated.
SIMILAR TO NEWS 5 DEBT RELIEF ACTION
They will be similar letters to ones that News 5 helped send out nearly 4 years ago when our station wiped about $1.5 million of medical debt for people in Northeast Ohio through RIP Medical Debt. This time, the city will be using the nearly $2 million from the American Rescue Plan Act funds, otherwise known as ARPA money.
Watch one of our previous "Diagnosis Debt" stories below:
There has been some concern about using federal tax money to pay large hospital systems instead of the non-profit hospitals forgiving the medical debts of poor people.
Councilman Clife told us he understands those concerns, but he’s hoping to help the little guy so they can pay for other needs.
Slife says paying off residents' debt will help them “improve their own circumstance, help them fix their own houses, help them pay for their education. Being able to get this debt off of their shoulders is a really quick and impactful way to help out thousands of people in the city of Cleveland.”
YOU DON'T HAVE TO APPLY
There’s no need to apply for the medical debt relief. RIP Medical Debt will be doing all the work and sending out the notices. Hang onto those letters when you get them so that if there’s any question about that specific medical debt in the future, you’ll have the paperwork to prove that it’s been wiped clean.
MORE NORTHEAST OHIO CITIES FOLLOWING SUIT
As News 5 was preparing to publish this story, the City of Baberton announced they will also be using ARPA funds and working with RIP Medical Debt to wipe out residents' medical debt after the city council unanimously approved the legislation Monday.
The contract with RIP Medical Debt will not exceed $110,000 and is expected to help over 4,000 Barberton residents wipe out over $10 million in medical debt. Like in Cleveland, residents who are over 400% of the poverty level and qualify will receive a letter from the company stating that the debt has been canceled.
Mayor Judge stated, “we will use a portion of our ARPA funds for to help our residents, but I am also working with the Barberton Community Foundation (Tuscora Park Health & Wellness Foundation) on a possible grant for this purpose as well. We researched cities such as Cleveland, Columbus and Akron, who are discussing or participating in this exact program. To me, this is a no-brainer to help our residents and help move the community forward.”
