Some 17,000 people in Eastern Massachusetts should soon receive letters in the mail that their medical debt has been forgiven.
That’s because a national nonprofit, Undue Medical Debt, announced this week that it purchased the debt, estimated to be worth some $30 million, in its “largest single abolishment” in the state.
People who qualify for the debt forgiveness will receive a letter in the mail starting this month. The debt relief is automatic and residents don’t need to do anything to accept the help, the nonprofit said.
Allison Sesso, the president of Undue Medical Debt , announced her organization purchased the debt with the help of the Atrius Health Equity Foundation , a nonprofit created in 2022 that is committed to eliminating health disparities in Eastern Massachusetts.
“Medical debt abolishment is one piece of the puzzle and while it’s by no means a silver bullet, it provides timely relief to counteract the financial and emotional weight of these debts of necessity,'' Sesso said in a written statement.
Sesso first announced the effort during a meeting hosted by the Atrius Health Equity Foundation in downtown Boston on Tuesday where advocates and health specialists talked about the debilitating effects of mounting medical held by people across the country.
Ann Hwang, president of the Atrius foundation, said she was glad to provide funding to support the effort.
”Medical debt can harm individuals’ and families’ financial stability and deter people from seeking the care they need,“ she said.
Undue Medical Debt carries out its work by purchasing debts from debt collectors, hospitals and other sources for a fraction of its original value. The nonprofit uses third-party data to help focus on purchasing debt by people with incomes at or below 400% of the federal poverty level.
It comes at a time when consumer debts are mounting across the country. About 1 in 3 working-age adults reported having dental or medical they needed to pay over time, according to a 2023 report by the New York-based Commonwealth Fund .
According to the Center for Health Information and Analysis, almost 13% of Massachusetts residents reported in 2023 that their family held medical debt, or had family medical bills that were being paid over time.
While many people laud their efforts, some say a broader focus should be on the system that leaves people in debt in the first place from simply taking care of their health. Debt elimination also may not help people who have had their credit ruined, although efforts are underway to remove medical debt from individual credit reports.
Chi Chi Wu, a senior attorney at the Boston-based National Consumer Law Center, told GBH News that medical debt can be damaging to people in many ways — including hurting people’s mental health and putting people at risk for wage garnishments or liens on their homes.
“Getting sick shouldn’t mean you are financially slammed,” she said, applauding the announcement by Undue Medical Debt: ”We know they’ve been doing this across the country for several years, and it’s great they are doing it here.“
