(WBBM NEWSRADIO) -- Cook County officials have announced they’ve found a way to erase the personal medical debt of tens of thousands of people.
County Board President Toni Preckwinkle says medical debt is the leading cause of bankruptcy in the U.S. and creates stress and health problems in people. So, the county is doing something about it for the people who need it most.
“Using federal funds provided by the American Rescue Plan Act, and in partnership with RIP Medical Debt, Cook County has acquired and erased nearly $80 million in medical debt,” she said.
Allison Sesso is president of the non-profit RIP Medical Debt, credits Cook County with starting a trend.
“There’s been many other cities, states and counties that have knocked on our doors since Cook County took this innovative approach,” she said.
Her non-profit leverages the for-profit medical debt market basically by paying off people’s medical bills at $1 for every $100 dollars of debt.
“It creates hypertension for people,” she says of the stress associated with medical debt. “It creates high blood pressure because the stress is significant and the mental strain on people. So, by lifting this burden for pennies on the dollar, we’re really doing a lot of good for a low cost.”
Sesso says the people who benefit are not just people without health insurance. She says the majority of the 72,000 people already helped were insured.
People do not apply for the relief. Medical providers give info to RIP Medical Deb, which buys the debt and then contacts the people being helped.
“We are overjoyed for the patients who will receive this gift,” Tesa Anewishki, CEO of Loretto Hospital, said.
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