News

Wayne County erases $27 million in medical debt for more than 46K county residents

Changes to medical debt reporting could improve your credit score
Posted
and last updated

DETROIT (WXYZ) — About $27 million in outstanding medical debt for more than 46,000 Wayne County residents has been erased, the county's Department of Health, Human and Veteran Services announced.

FULL INTERVIEW: Warren Evans talks about erasing medical debt

FULL INTERVIEW: Warren Evans talks about erasing medical debt

The debt was reportedly sourced from a local hospital that the department said wanted to remain anonymous but "is committed to community benefit and making healthcare accessible."

The county is working with Undue Medical Debt. The nonprofit "acquires medical debts belonging to those least able to pay in large, bundled portfolios for pennies or less on the dollar."

The debt relief is part of a county program, which aims to wipe out more than $700 million in medical debt for county residents. The patients are residents in Wayne County who are four times or below the federal poverty line, or have medical debt that equals at least five percent of their annual income.

“With this program, we are doing our part to address the way our national healthcare affordability crisis affects Wayne County residents. Medical debt is a financial anchor on too many families, often forcing them to choose basic everyday needs or being forced to pay medical bills. We are proud to work with Undue Medical Debt to help bring a measure of relief to vulnerable families throughout Wayne County,” said Dr. Abdul El-Sayed, Wayne County Health Director and Director of Health, Human, and Veterans Services, in a statement.

Wayne County reports that they have invested $5 million in the collaboration. About one dollar that goes to the nonprofit reportedly relieves $100 in medical debt.

Those who have had their debt relieved will receive an Undue-branded envelope in the mail this week, signed by Wayne County Executive Warren C. Evans.

More information about this debt relief and upcoming relief can be found at this link.