CINCINNATI — The city of Cincinnati said it will spend $1.45 million on medical debt relief to help over 30,000 city residents.
Residents don't have to apply as the program works directly with providers, in coordination with the nonprofit Undue Medical Debt.
This program is a part of a bigger plan that's been in the works from Mayor Aftab Pureval's administration for more than a year now known as the Cincinnati Financial Freedom Blueprint. In February, Cincinnati City Council voted to set aside $2.1 million to pay for this program.
Cincinnati resident Ryan Dickson said she's been trying to pay off $15,000 in medical bills the last few years.
“You make a choice, and you do what you can and pay where you can, as much as you can, as often as you can," said Dickson.
The program could pay off up to $150 million in medical debts.
“What people say they need from our research is help with their debt," Mayor Pureval said Thursday. "Medical debt is a piece of that debt picture, it’s not the whole piece.”
According to the city's research, one in three city residents are behind in paying off medical debt.
“Everything’s overpriced these days and any cuts would be welcomed," said Jamie Overbee, who works for a home health agency. "It’s like I 'oh, I have to pay $3,000 right now?' It’s 'oh, I don’t have that' and it’s like going without (buying other things), and it causes more issues.”
Cincinnati’s 'Financial Freedom' Plan
This medical debt relief program is the first of the three-part plan, according to the city. Mayor Pureval's Financial Freedom Blueprint plan also includes:
- $250,000 for a guaranteed income program
- $375,000 for child savings accounts that could possibly help 1,000 students in Preschool Promise
"This is not a program where you're sent a letter, your debt is wiped out and then we never see you again," Mayor Pureval said. "This is a program where your debt is wiped out, (and) we're providing you wrap-around services."
The debt forgiveness is only for the following eligible residents of Cincinnati who:
- Make below 400% of the federal poverty level, or
- Make less than $124,800 a year as a family of four, or
- Have debt that is more than 5% of their income
“We want to help our people," Dickson said. "I would love that. I would feel very honored and very grateful! I would be very shocked if it came to me. I wouldn't know how to react. I'd probably cry!"
The program is expected to go 18 months or as the mayor said Thursday, until all of the allotted $1.45 million is spent.
If your medical debt is forgiven based on the qualifications above you will get a letter similar to these documents below, sometime as early as within the next month:
