There is at least one RIP that isn’t bad news, and that’s RIP Medical Debt. High fives are sure to come from half a million New Yorkers who will have their medical debt wiped out.
Oh, Nellie, you might say, what is this all about?
Well, RIP Medical Debt is not exactly new; it’s been around for nearly a decade and is one of the positive developments that emerged from the Occupy Wall Street movement. A relief initiative that, for the most part, has flown under the radar has fresh exposure with
Mayor Adams’s announcement on Monday that the city would invest $18 million in a partnership with RIP Medical Debt that buys up unpaid medical debts from hospitals at deep discounts and then erases them.
The mayor said, “Up to a half million New Yorkers will see their medical debt wiped out thanks to this life-changing program—the largest municipal initiative of its kind in the country.”
How does all this work? According to Daniel Lempert, a spokesperson for RIP Medical Debt, the group has been in conversations with New York City hospitals and examining their books to identify patients eligible for debt relief. The group seeks out patients whose unpaid medical bills are at least 5% of their annual household income, or patients in households with an income under four times the federal poverty line ($31,200 for a family of four).
You are possibly eligible for relief if you are, like four out of every 10 adults, saddled with some form of medical debt, and chosen by RIP Medical Debt since New Yorkers do not have to apply to be included in the program. The group will forward you a letter indicating the erasure of your debt.
An immediate question is how the organization is funded. According to one source, it relies mainly on donors and partnering with local governments. For those chosen, it’s almost like hitting the lottery. Good luck!