A nonprofit acting like a debt collector is buying up portfolios of medical debt owed by millions of U.S. consumers, but instead of chasing down consumers to pay up, the organization is paying off debt for people who need help most. Since its founding in 2014, RIP Medical Debt has helped more than 3 million families clear their medical debt to the tune of almost $7 billion.
Using precise data analytics to identify medical debt among people most in need of help – households with incomes of less than two times the federal poverty level guideline of $13,590 or those with medical debt of at least 5% of their gross income – the nonprofit pays off the debt using monies donated to them. Once the debt is paid off, RIP Medical Debt mails a letter to the individual letting them know their debt is taken care of.
For households that may not be eligible for debt relief, Allison Sesso, president and CEO of RIP Medical Debt, encouraged them to do their due diligence in finding debt relief through other means, such as negotiating a lower amount from the insurance company if covered by private insurance and getting itemized bills from hospitals and doctors to make sure all charges are accurate. Another option is to check out fairhealthconsumer.org, a nonprofit that provides information on what insurance companies are paying in communities nationwide.
Source: Grow, May 4, 2022.