Cook County plans to erase nearly $80 million of residents' medical debt

Cook County has acquired and erased more than $25 million in medical debt owed by about 45,000 residents, and intends to eliminate an additional $54 million in coming weeks, officials announced Wednesday.

The relief - expected to impact nearly 73,000 residents in all - comes through the Medical Debt Relief Initiative, a new county program funded by federal COVID relief dollars and operated in partnership with the nonprofit organization RIP Medical Debt.

"This innovative initiative demonstrates our commitment to making health care accessible to all and supporting our most vulnerable families," Cook County Board President Toni Preckwinkle said in Wednesday's announcement. "Medical debt is a social determinant of health that can undermine people's physical and mental well-being by creating stress and preventing necessary follow-up visits."

Through the program, RIP Medical Debt contacts hospitals and health systems serving the county and negotiates the sale or donation of medical debt owned by residents who qualify based on financial hardship and other criteria.

"Medical debt is the leading cause of bankruptcy and undermines health in myriad ways; it's our pleasure to make this debt relief possible," said Allison Sesso, president and CEO of RIP Medical Debt. "No one should choose between putting food on the table or keeping themselves and their family healthy."

To qualify, a resident must have an income up to 400% percent of the current federal poverty level - about $120,000 for a family of four - or have medical debt that is 5% or more of their annual income.

Residents cannot request relief. Instead, RIP Medical Debt acquires it from local health care providers without the debtor taking any action, and beneficiaries are then notified by mail that their debts have been relieved.

Because the debt is purchased in bundled portfolios for a fraction of its face value, $1 on average abolishes $100 of medical debt, officials said Wednesday.

"This initiative allows us to take meaningful action to address one of the most critical needs in our communities - medical debt relief," said Thor Thordarson, president and CEO of AdventHealth, Great Lakes Region, which operates AdventHealth GlenOaks in Glendale Heights and three other suburban hospitals. "It aligns with our mission-driven efforts to ensure access to high-quality care for everyone, especially those most in need."

According to the county, more than 14% of county households owe some form of medical debt, and people of color are disproportionately impacted.

For a list of ZIP codes most affect by the relief program to date, and a heat map of their locations, visit https://tinyurl.com/7hxte8fj.