Everything to know about Columbus' agreement to wipe out $335 million in medical debt
Columbus City Hall approved on Monday evening a sweeping landmark deal to wipe out $335 million of medical debt, providing financial relief to more than 340,000 moderate-income residents in Columbus.
In return for wiping out the debt, the city expects to spend $500,000 toward administrative costs to take care of the outstanding debt, including mailing letters to about one out of every three Columbus residents letting them know their debt has been dismissed.
The deal took seven months to finalize, was made in collaboration with the Central Ohio Hospital Council, which represents the Mount Carmel Healthcare System, Nationwide Children's Hospital, Ohio Health and Ohio State University Wexner Medical Center.
More: Not covered by the Columbus medical debt settlement? Here's tip on what you can do
The Dispatch compiled a list of some common questions you might have about the debt relief new deal:
Who is eligible for medical debt relief?
To qualify for relief, you must be a Columbus resident and have medical debt with the city's four main hospital systems: OhioHealth, Ohio State Wexner Medical Center, Mount Carmel Health System, and Nationwide Children’s Hospital.
Debtors whose incomes are between 200% and 400% of the poverty level, or $55,500 and $111,000 for a family of four. People who make below 200% of the federal poverty level are not billed for medical care, however, there are often other avenues for dispatching medical debt for people below that line.
You received treatment at any of the four area hospital systems between 2015 and 2020.
What is the Central Ohio Hospital Council?
The Central Ohio Hospital Council is a nonprofit that describes itself as a forum that allows four major central Ohio health care systems - Mount Carmel Healthcare System, Nationwide Children's Hospital, Ohio Health and Ohio State University Wexner Medical Center - to collaborate. Under this agreement with Columbus, the organization says it will dispatch more debt for less money than originally proposed.
Do I have to do anything?
You do not have to apply to or submit anything to receive relief. If you're eligible, you should receive a letter in the mail notifying you that you have been chosen for debt forgiveness.
How did Columbus pay for this?
The city used money from the American Rescue Plan, a $1.9 trillion economic stimulus bill signed into law by President Joe Biden in March 2021.
Wasn't RIP Medical Debt involved in this deal?
The Council originally proposed entering a contract with RIP Medical Debt, a New York-based nonprofit that wipes out medical debt for those who qualify.
Local health providers questioned the need for a third-party and decided to go about dismissing the medical debt themselves.
Are other cities doing this?
Ohio cities are taking steps to relieve medical debt for their residents. Toledo — in partnership with Lucas County — is hoping to spend $1.6 million to wipe away an estimated $240 million in medical debt. The city of Akron allocated $500,00 to purchase debts through RIP Medical Debt. RIP then negotiates with hospitals and debt collectors to buy debts at a substantial discount.
Cleveland City Council approved $1.9 million of federal money to help wipe out $2 million of medical debt.
For more details about the ordinance, read Columbus City Council President Shannon Hardin's press release here.
smeighan@gannett.com
This article originally appeared on Aberdeen News: What to know about Columbus' plan to wipe out millions in medical debt
