How some cities are buying medical debt

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How some cities are buying medical debt
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This is only putting a temporary bandage on a huge systemic problem in America's health system, those in the medical field say.

David Carter was hailed a hero for rescuing two women during the 2017 Las Vegas mass shooting, but now he faces new challenges after he suffered a hand injury in a suspected hit-and-run last year and needed two surgeries. As medical expenses piled up, he grappled not only with physical pain but also financial strain.

Cook County, Illinois, will spend $12 million to eliminate as much as a billion dollars in medical debt for its residents. Holloway says like other local governments, D.C. has income qualifications,"which are up to 400% of the federal poverty line, or if the medical debt is 5% or more of your annual income, you're eligible for forgiveness without any application process."An online poll of 1,500 Americans last year found 71% supported government efforts to relieve medical debt. Others, however, argue that it's inappropriate to use taxpayer dollars to cancel individuals' medical debts.

"One of the primary causes of medical debt is lack of enrollment in comprehensive health care insurance," said Molly Smith, Vice President for Policy, American Hospital Association. "Non-profit hospitals have not yet demonstrated that their activities are consistent with the charitable mission, so evidence suggests that tax exempt status does not provide assurance that non-profit hospitals will provide sufficient benefits," said Ge Bai, accounting professor at Carey Business School.

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