The state is partnering with Undue Medical Debt, a nonprofit organization that buys debt in bulk from medical providers, to relieve medical debt in counties across Michigan. Kalamazoo was one of the first counties to partner directly with Undue, and officials say $2.48 million of medical debt was forgiven for Kalamazoo county residents in the first quarter.
Individuals can’t request to have their debts forgiven. Instead, Undue buys debt directly from medical providers, like hospitals, which then erases the debt permanently for any eligible individuals included in the debt portfolio.
Those who have had their debts forgiven receive a letter in the mail notifying them. Jen Strebs, Chair of the Kalamazoo County Board of Commissioners, says residents who have had their debts forgiven don't need to take any action.
"Their debt has just been relieved. And it's important for community to know the program is underway because we don't want people to think that they've received a fraudulent letter. This is a real program, really releasing their debt. When they receive this communication, they can believe it. They know it's been excused. It's off of their back. They're not burdened with it anymore," Strebs said.
The program isn't a one-time thing. Strebs said the county is hoping to relieve more debt by having additional medical providers sell their debt portfolios. Medical providers and hospitals have to be willing to participate in the program, and Strebs said Undue is continuing to reach out to providers in the community.
"We encourage providers in the community to participate in the program, to consult with Undue Medical Debt and consider selling their debt portfolio, and let us relieve that as we can for the community. So, providers can still reach out," Strebs said.
Bronson Healthcare, Kalamazoo's largest medical provider, said in an email statement that it's not participating in the Undue Medical Debt program at this time.
"Bronson is not currently participating in the Undue Medical Debt Relief Program, but we are open to future collaboration with Kalamazoo County and other partners," spokesperson Marcie McCann wrote.
McCann later clarified that Bronson is not participating because, she said, none of the three organizations involved in the debt cancellation has asked it to do so.
In its statement, Bronson added that it is "committed to helping patients manage and reduce their healthcare costs."
"All people who are uninsured, insured, or underinsured and unable to pay for medically necessary care can be considered for financial assistance. We have dedicated staff at each of our four hospitals that include financial counselors, social workers and community health advocates to connect patients with our various financial assistance programs. They also assist with enrollment in nonprofit financial aid programs and help patients explore alternative insurance options. Approximately 75% of applicants qualify for assistance," McCann said.
According to Undue Medical Debt, organizations with a generous financial assistance policy still often have qualifying debts. This may be because the debt accounts are too old to qualify for assistance, the eligible individual neglected to apply for assistance, or other reasons. Strebs said more medical providers participating in the program means more debt can be erased for members of the community.
"Whenever we can find a way to expand access to care, dignity and care, those are approaches that we have to take for the community. The need is too great. The negative impacts are too severe when people can't get the care that they need. And I know today that releasing the medical debt that we've been able to so far knocks that out of the way for people, gives them hope and an opportunity to get well," Strebs said.
