The act is powerful and impressive: not-for-profit organization RIP Medical Debt will use a single donation to “wipe out” $250 million of medical debt by the end of the year.
Modern Healthcare: “RIP Medical Debt said its campaign is the largest medical debt abolishment in the history of the county. The organization buys large portfolios of debt from medical providers and debt sellers on the debt market and forgives it, helping families and individuals. The debt is then removed from credit reports and can no longer be collected on, the organization said.”
According to RIP Medical Debt, the couple responsible for the charitable donation said, “Catastrophic illness strikes people in all walks of life without warning. Paralyzing medical debt hits people when they’re down, turning tragedy to travesty. A quarter billion dollars is just the tip of the immense iceberg of debt submerging millions of Americans in a sea of hopelessness that can adversely affect the course of their illnesses, damaging their ability to recover. We only wish that we could do more. We pray for a day when disease is the only thing patients will need to fight and the one-two punch of life-threatening illness and overwhelming debt will no longer face so many of our fellow Americans.”
“Healthcare financing is a major crisis in the U.S. This extraordinary act will bring hope to so many people who have felt they were carrying this burden alone at a time when they need it most”, said RIP co-founders Jerry Ashton and Craig Antico.
Modern Healthcare continued: “RIP Medical Debt said it plans to forgive the debt in stages, with $150 million forgiven immediately. Random recipients will receive branded RIP Medical Debt abolishment letters in yellow envelopes by Nov. 6. Of that $150 million in debt, $50 million will be for U.S. veterans and their families. The remaining $100 million will be spaced out to last through the year, with $50 million mailing for Thanksgiving and another $50 million for the holidays, according to RIP Medical Debt.”
RIP Medical Debt offered these statistics:
- 1 in 5 people living in the U.S. are grappling with medical debt
- Nearly 50% of all credit card debt in the US is from medical debt
- Medical debt contributes to 60% of all bankruptcies in America
- More than 40% of Americans wouldn’t be able to cover an emergency expense of $400
For more information on the issues surrounding medical debt, please contact RIP Medical Debt.