Cleveland councilmembers aim to eliminate over $180 million in medical debt

CLEVELAND, Ohio (WOIO) - Cleveland councilmembers will hold a press conference on legislation that aims to eliminate more than $180 million in Clevelanders’ medical debt Monday.

Council’s action will result in the cancellation of inactive debt that may be affecting residents’ credit scores, making buying anything from a car, to a house, to a couch more expensive.

In a press release, council said that medical debt also creates mental and emotional anguish and may be preventing Cleveland residents from seeking further healthcare.

This legislation is expected to help about 50,000 Clevelanders.

Also at the press conference will be a representative from RIP Medical Debt, the nonprofit organization the city will contract with to implement the medical debt forgiveness.

RIP Medical Debt, known for its work with municipalities nationwide to eliminate medical debt, buy large bundles of past due medical debt at one time for pennies on the dollar directly from providers like hospitals.

Residents don’t apply, instead, as RIP Medical Debt buys more and more of the bundles of Clevelanders’ debt, residents will be notified via a branded RIP Medical Debt letter in the mail that their debt is eliminated and is off their credit report.

Medical debt erasure is in line with Council’s commitment to resolving inequities, and this action brings tangible, direct help to Cleveland residents.

Those eligible for medical debt abolishment must be city residents and have incomes at four times the poverty level or below or have medical debt that is 5% or more of their annual income.