The details
According to a news release, Texas is the leading state in terms of medical debt among the 20 largest counties, with Bexar County ranking third highest, and 20.9% of residents burdened with medical debt.
Using $115,000 allocated from the District 9 discretionary fund to support the effort, the program will purchase medical debt from providers, such as hospitals, at a severely reduced rate. This purchase will relieve approximately 45,000 San Antonio resident debtors of some or all of their medical debt, amounting to an estimated $60 million in accumulated debt.
The program is for residents who are either at or below four times the federal poverty level and for residents whose medical debt is 5% or more of their annual income. According to a news release, there is no application process. The relief effort is confined to reliving qualifying debt acquired from companies that own the debt, such as collection agencies and hospitals.
“Medical debt is the leading cause of bankruptcy in the United States, and so many families are one illness or emergency room visit away from financial ruin,” Courage said. “We can’t fix the whole system overnight, but we can bring immediate relief to thousands of San Antonians.”
Quote of note
“San Antonio has one of the highest rates of uninsured and underinsured residents in the Country. The state’s refusal to expand Medicaid only exacerbates the problem,” Courage said. “This program is about giving people relief and restoring dignity.”
The backstory
According to a news release, the initiative spearheaded by Courage is the first time Undue Medical Debt has partnered with a government agency in Texas.
Stay tuned
Letters informing residents of debt relief will arrive in Undue Medical Debt branded envelopes in the coming weeks.
