Home Economy Diossa launches medical debt relief program

Diossa launches medical debt relief program

By

Christopher Allen

-

10/29/2024

k3HFJd3U-statehouseext (2) — R.I. GENERAL TREASURER JAMES A. DIOSSA on Tuesday announced a partnership with the nonprofit charity Undue Medical Debt to use $1 million to purchase medical debt from health-care providers and debt collectors. /PBN FILE PHOTO/CASSIUS SHUMAN

PROVIDENCE – R.I. General Treasurer James A. Diossa on Tuesday announced a partnership with a nonprofit charity to help ease the pain of medical debt for some state residents. Via the partnership with Undue Medical Debt and part of legislation passed by the General Assembly this year, the state plans to use $1 million to

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PROVIDENCE – R.I. General Treasurer James A. Diossa on Tuesday announced a partnership with a nonprofit charity to help ease the pain of medical debt for some state residents. Via the partnership with Undue Medical Debt and part of legislation passed by the General Assembly this year, the state plans to use $1 million to purchase medical debt from health care providers and debt collectors. For pennies on the dollar, the nonprofit uses government grants and charitable donations to purchase large portfolios of debt. Eligible individuals must be Rhode Island residents, have estimated incomes equal to 400% or less of the federal poverty line or have debt amounts incurred for necessary medical treatment and that is more than 5% of their estimated income. Co-sponsor Sen. Mark McKenny, D-Warwick, called medical debt "a danger to public health.” "No one should become trapped in a spiral of debt, with the heavy weight of stress that debt brings simply because they get sick,” he said. Health care providers holding medical debt owed by a Rhode Island resident will be able to participate in the program but Undue said it can only erase debts from participating partners. During a press conference Tuesday at the Statehouse, Diossa noted that medical debt is the leading cause of bankruptcies in the United States. “I have heard from folks across the state who are struggling with medical debt. The financial constraints brought on by unaffordable medical bills drive people to defer needed medical care, leading to a cycle of debt, distress, and unresolved, potentially escalating health issues,” he said. “This new program is a critical resource to protect Rhode Islanders’ finances, dignity and health.” In a statement, Senate President Domnick Ruggerio said the initiative “will make a meaningful, positive difference for people across our state.” Eva Stahl, vice president of Public Policy and Program Management at Undue, said medical debt affects an estimated 100 million people in the Unites States, costing roughly $220 billion. Diossa said it won't be able to provide definitive timelines on when any debt will be erased and cautioned that Undue will only cancel medical debt deemed “medically necessary,” which is determined solely through health care records. Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.