Billions in medical debt to be wiped out for up to a million Arizonans, governor announces
PHOENIX - Arizona Governor Katie Hobbs made a major announcement on Monday about medical debt.
She announced the state will be wiping out medical bills for up to a million Arizonans as the state is partnering with the Long Island-based charity RIP Medical Debt.
They'll be using funds from the American Rescue Act to buy back up to $2 billion of Arizona's medical debt.
The debt will be bought back from hospitals, healthcare providers and debt collectors. Those who qualify will have their credit score automatically adjusted.
Hobbs says residents who make less than the federal poverty level and those whose debt equals 5% or more of their annual income are eligible for the program.
"In some cities, health care is the difference between life and death. No Arizonan should have debt hanging over their head because they needed help through no fault of their own. As governor, I take seriously my duty to protect vulnerable Arizonans from falling into medical debt and make health care more affordable," Hobbs said.
Arizonan Jim Baker has medical debt due to cancer treatment.
"The debt makes me feel less than. I've gone from being a contributing member of the community and always feeling that I paid my way to not being able to pay my way, and having to ask for help and to have that debt forgiven would just be a blessing that I can't imagine," Baker said.
The program is expected to take place over the next two years before funds from the American Rescue Act expire.
You can learn more about the announcement by clicking here.
U.S. Vice President Kamala Harris released a statement on the announcement, saying in full:
"Medical debt is a leading cause of bankruptcy in America. I applaud Governor Hobbs for leveraging American Rescue Plan Funds to help eliminate up to $2.5 billion in medical debt for up to 1.6 million Arizonans. President Biden and I strongly believe healthcare should be a right and not a privilege just for those who can afford it, and no one should have to go into debt just to get the quality healthcare that they need. That’s why the Biden-Harris Administration has consistently taken action to lower the cost of health care, protect consumers, and prevent exploitation in the health care system. Today’s announcement in Arizona is the largest commitment of American Rescue Plan funds to eliminate medical debt to date – as they join several states, counties, and cities across the country using American Rescue Plan funds to act to lessen the burden of these debts for families in their communities."