By Consumers for Quality Care, on October 17, 2023
A partnership between the financial services company EarnIn and the nonprofit RIP Medical Debt recently wiped out $13.9 million in medical debt for nearly 10,000 residents of Bexar County, Texas, according to Texas Public Radio.
According to EarnIn’s CEO Ram Palaniappan, clearing medical debt is aligned with the company’s mission of “helping people get financial momentum.”
EarnIn joined forces with RIP Medical Debt, which purchases medical debt from hospitals for pennies on the dollar and then notifies the consumers carrying the debt that their debts have been forgiven. This medical-debt relief is meant to assist low-income consumers.
RIP Medical Debt CEO Allison Sesso noted that the organization believed that medical debt should not exist, calling it a “systemic problem” that has negative effects on a person’s health, both physically and mentally. “There’s [sic] too many people that are struggling under the weight of medical debt, and it’s hurting people’s willingness to go to the doctor and get the care that they need. It’s undermining people financially. It is creating mental health stress on families,” said Sesso.
CQC applauds efforts that aim to eliminate the medical debt crisis for consumers and also urges lawmakers and the Biden administration to enact policies that will protect consumers from crushing medical debt.