(WXYZ) — Michigan has eliminated $144 million in medical debt for more than 210,000 residents as part of a state initiative announced by Gov. Gretchen Whitmer on Thursday.
Watch Jolie Sherman's video report:
The debt relief comes through a partnership with the nonprofit organization Undue Medical Debt, which purchases medical debt for pennies on the dollar.
"We believe that getting sick or getting hurt shouldn't have to mean going broke," Whitmer said.
Lt. Gov. Garlin Gilchrist noted the widespread impact of medical debt in the state, saying, "We estimate that there are more than 700,000 adults who carry medical debt. That's more than the combined populations of Grand Rapids, plus Lansing, plus Ann Arbor."
The initiative aims to address cases like that of Naqua Atkinson, a 23-year-old who died from a severe infection after avoiding dental treatment due to fears of accumulating more medical debt.
Jenn Strebs, chairperson of the Kalamazoo County Board of Commissioners, shared Atkinson's story: "You know he had had serious diabetes most of his life, and he was suffering from a pretty severe toothache at work. And all of us were encouraging to go and get it checked out."
"It was enough debt to make him fear going for care, and that's reality for a lot of people," Strebs said.
Allison Sesso, president and CEO of Undue Medical Debt, explained how the organization operates: "We buy medical debt for pennies on the dollar. One dollar gets rid of at least 100 dollars of medical debt. That's not magic, that's math. There is a for-profit market for medical debt that we take advantage of."
Sesso also expressed concern about recent Medicaid cuts enacted by Congress, warning they could exacerbate the problem.
"It's going to make a lot of people uninsured, which is going to increase the medical debt people have. On top of that, it's going to make it more expensive for everybody else. Because insurance works like a pool of people, and the more people who are in it, the cheaper it is for everybody."
Michigan residents whose debt has been relieved will receive notification letters in the mail.
"So, look for that letter in the mail. That's why we're doing this press. Because we want to make sure people see this and they know about it and they believe that letter," Sesso said.
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