A new program could help relieve the burden of medical debt for millions of North Carolinians who are struggling to pay for past treatments, according to Governor Roy Cooper.
New Debt Relief Initiative
Eligible North Carolina hospitals have agreed to participate in a new debt relief initiative. The program will give hospitals higher Medicaid payments through the Health Access and Stabilization Program (HASP), in exchange for them wiping out old debts and avoiding debt liabilities for new patients.
99 Hospitals Signed Up
The announcement was made by State Gov. Roy Cooper, who confirmed that 99 hospitals had qualified and signed up to the landmark debt forgiveness program.
Approved and Confirmed in Six Weeks
The program was submitted to Medicaid regulators six weeks ago, put forward by Cooper and NC’s Health and Human Services Secretary Kody Kinsley.
Easing Burden for Two Million
In the proposal, they claimed that the initiative could potentially help ease the medical debt burden for approximately two million low and middle-income patients across the state.
$4 Billion in Debt Relief
While hospitals can typically only recover a small amount of medical debt, according got the Associated Press, the program would help these hospitals to relieve as much as $4 billion.
“A Win, Win, Win” for NC
“This is a win, win, win,” Cooper said during the press conference, where he was joined by Kinsley and Dave Almeida of the Leukemia and Lymphoma Society. “It’ll help our hospitals, our people, and our economy thrive.”
“Medical Debt is Not a Choice”
“Unlike most debts, medical debt is not a choice,” he continued. “People don’t choose to have accidents, cancer, or heart attacks. This plan helps eliminate medical debt for low to moderate-income people in North Carolina.”
Raising the Bar for State Healthcare
Cooper claimed the program would ‘raise the bar” for healthcare across the state, and have “life-saving” effects for North Carolina families as well as the state economy.
Stronger Charitable Policies
Under the new program, these 99 hospitals will not only forgive old debts but will find new strategies to bolster charity care policies.
Sign-Up Required
The program is not an automatic opt-in. Hospitals were required to formally sign up to receive “enhanced” payments from the HASP.
Option to Refuse
Hospitals that did not sign up would continue to receive the same base level of Medicaid reimbursements, regardless of their progress in providing debt relief.
Every Eligible Hospital Will Participate
The Centers for Medicare and Medicaid Services approved the proposal last month and gave all 99 qualifying hospitals a few weeks to confirm their participation. All 99 eligible rural, acute, and university-affiliated hospitals chose to participate, including the largest hospital systems in North Carolina.
Some Hospitals Involved
The eligible hospitals included the Novant Health New Hanover Regional Medical Center and all other Novant facilities, Columbus Regional Healthcare, and the Dosher Memorial Hospital.
Dating Back to 2014
An announcement by the Governor’s office confirmed that all hospitals that have opted in are now committing to relieving debts for Medicaid beneficiaries dating from as far back as Jan. 1, 2014.
Other Debt Covered
The initiative also covers “uncollectible” medical debt for patients who live at 350% or lower of the federal poverty level and any past medical debt that exceeds more than 5% of a patient’s annual income.
Beginning Soon
These changes will begin in the next few months, including new hospital strategies to avoid new debts. This will include charity programs for patients who already qualify for welfare and food stamps and capping debt interest rates.
Advocates and Organizations Celebrate
When the initiative was first proposed, many public advocates came forward to champion it. Deborah Maxwell, president of the North Carolina NAACP and a former Public Health Social Worker, called it “a major deal.”
Praise from Undue Medical Debt
Allison Sesso, the CEO of Undue Medical Debt – a charity organization that advocates to eliminate personal medical debt – has also praised the program as “groundbreaking.”
A “Truly Groundbreaking” Initiative
“This multi-faceted, state-wide medical debt relief initiative is truly groundbreaking,” Sesso said in a public statement. “North Carolina’s approach stands out for its breadth in size and scope, benefiting North Carolinians across the entire state AND impressively, addressing medical debt both pro- and retrospectively.”
A “Heartening” Announcement
“It is heartening to see so many hospitals engaged and ready to join the state in this pioneering endeavor to address this problem head-on,” she continued. “It cannot be overstated what a huge win this is.”
Featured Image Credit: Shutterstock / Evan El-Amin.
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