The Dallas Morning News profiles an effort by Covenant Churchto wipe out $10 million in medical debt for more than 4,000 Dallas-area families, including some veterans.
The effort was possible with a $100,000 donation to the nonprofit RIP Medical Debt, which coordinated the purchase and retirement of medical debt.
Here’s how it works:
When hospitals and doctors can’t collect payment on medical bills, they sell the debt to collection agencies for a fraction of what is owed — generally pennies on the dollar. The consumer, meanwhile, falls further into the financial hole as big bills keep getting bigger.
RIP steps in to give the providers another option, buying the debt in bundles and making good on what’s owed. At that point, struggling families are sent word that they’re free and clear.
For more information on the issues surrounding medical debt, please contact RIP Medical Debt.