California Start-Up Forgives Medical Debts

Several hundred Californians who owe medical debts will be getting a big surprise in the coming weeks after an Oakland start-up purchased their debts and forgave them, according to CBS San Francisco.

Rachel Norman is the founder of Better, a company that recently purchased more than $1 million of outstanding medical debt and is forgiving every penny.

“The smallest debt that we forgave was 25 cents. All the way to $124,000. The average is about $4,000,” said Norman “The letters are going out now.”

Better’s not just doing it to be nice. It’s also trying to call attention to its own business, helping people file out-of-network health insurance claims.

Recipients of the giveaway were chosen at random.

To pull it off, Better joined forces with RIP Medical Debt, a charity that buys up medical debt from doctors, hospitals, and collection agencies and retires it.

For more information on the issues surrounding medical debt, please contact RIP Medical Debt.