Detroit City Wire

More than 14,000 residents of Oakland County are receiving notifications about the forgiveness of $9.1 million in medical debt. These letters are expected to be delivered by the end of this week.

“This is helping individuals and families pay off their medical debt and rehabilitate their credit scores, giving people the freedom to fully participate economically and live their best lives,” stated Oakland County Executive David Coulter.

This effort is part of a larger initiative funded by Oakland County, aiming to eliminate up to $200 million in medical debt for around 80,000 residents using $2 million from the American Rescue Plan Act. The program is conducted in collaboration with Undue Medical Debt, a national nonprofit organization focused on providing financial relief for unpaid medical bills.

Medical debt is a significant cause of bankruptcy in the United States, impacting an estimated 114,000 residents in Oakland County. The program seeks to alleviate this burden by identifying eligible debts, purchasing them at reduced costs, and subsequently canceling them.

“Shedding the heavy burden of medical debt can have a life-changing impact on our area families. We celebrate the milestone of helping more than 14,000 residents across the county,” said Board of Commissioners Chair David T. Woodward (D-Royal Oak). “This initiative highlights our commitment to building a healthy and thriving community, lowering costs for working families and helping people achieve economic freedom.”

Undue Medical Debt works with health systems, hospitals, and physicians’ groups to identify debts held by current residents who earn at or below four times the federal poverty level or whose medical debt exceeds 5% of their annual income. Once identified, these debts are purchased and forgiven.

Last March saw support from Michigan Sen. Appropriations Chair Sarah Anthony (D-Lansing) as the state allocated $4.5 million in its budget for local medical debt forgiveness initiatives in counties including Oakland.

A similar program aims to relieve $700 million in medical debt for Wayne County residents.

Due to the source-based nature of this relief initiative, only qualifying debts can be relieved if providers agree to participate. Individuals cannot request relief directly; however, Undue Medical Debt has invited regional providers like hospitals to engage with this initiative.