North Carolina Officials Enact Measures to Address Medical Debt Crisis

By Consumers for Quality Care, on October 2, 2024

Countless stories of consumers falling into medical debt, through no fault of their own, spurred North Carolina officials to try a new approach to erasing billions of dollars in debt, according to KFF Health News. 

In 2019, Tom Burke was involved in a serious car accident, requiring extensive work to rebuild his leg. Though Medicaid covered most of the cost of the operations, he was still left with a bill for $10,000. Confined to a wheelchair and unable to work, Burke fell behind on his medical bills, and his debt was sent to a collection agency. His credit score suffered as a result, hurting his and his wife’s ability to buy a house. “We were forced into homelessness for a time,” said Burke. “For everything we need credit for, we’re screwed.” 

North Carolina has one of the highest percentage of residents with unpaid medical debt on their credit report. A 2022 survey conducted by KFF found that 41 percent of adults carry some form of medical debt. 

Stories like these drove North Carolina officials to tackle the issue head on. Working with the federal government, state government officials struck a deal with the hospital industry. In exchange for releasing federal money tied to the state’s recent decision to expand Medicaid, hospitals agreed to forgive billions of dollars in consumer debt. They also agreed to implement new policies designed to prevent consumers from incurring debt going forward. 

North Carolina’s Medicaid expansion, coupled with its medical debt plan, may serve as a model for other states. Although it took a concerted effort by government officials, actions like these will benefit consumers now and in the future. 

CQC applauds these efforts but urges the nation’s elected leaders to address the root causes of medical debt and protect consumers.