Everyone has heard how medical debt can be as debilitating as the disease and wreak havoc on a patient’s finances. While there have been many efforts to curb the cost of health care and to provide insurance coverage to more Americans, the problem persists. It is estimated that over $100 billion of medical debt is in the collections process.
An organization, RIP Medical Debt, has taken an unusual approach to help alleviate the burden for low-income patients — it utilizes donations to buy medical debt from hospitals and collection agencies for pennies on the dollar and then randomly relieves debt in bulk. Since its origin in 2014, it has relieved more than $8.5 billion for patients. CEO Allison Sesso noted that many of the debts are between $500-$5,000 — incurred by insured clients who cannot cover the deductibles. Not only does she reduce the patient’s financial burden, but the organization also reduces the stress that comes with being in collections or having unpaid obligations.
This strategy isn’t going to fix the problem or address the source of anything that causes it, but for the people RIP Medical Debt helps, it can be lifesaving. Is there a new point on the spectrum of a vexing issue that you can focus on? While you’re working on the root cause maybe there is an innovative way to temporarily provide some relief for those impacted by what you’re trying to solve.
Source: Buying Medical Debt to Forgive it, Interviewed by Tom Murphy, February 12, 2023
