RALEIGH, N.C. — Over $6.5 billion in medical debt was erased for over 2.5 million North Carolina residents.
North Carolina Gov. Josh Stein and the State Health and Human Services Secretary Dev Sangvai announced this move on Monday. This debt erasure realizes an initiative started by former Gov. Roy Cooper — although, his Medical Debt Relief Program only aimed to erase $4 billion.
Thousands of people have already gotten letters from hospitals saying their medical debt has been erased, according to the governor's office.
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For North Carolina hospitals to receive "an enhanced level of payment" through the Healthcare Access and Stabilization Program (HASP), they were required to relieve debt for "certain low- and middle-income North Carolinians." The hospitals were also be required to adopt more generous charity care policies moving forward. HASP does not require the use of state funds.
Stein called this move "life changing" for North Carolina families.
"Medical debt is a tremendous weight keeping so many families from financial security, and, unlike most other forms of debt, it’s not a choice," said Stein. "Today’s announcement will free people from financial stress so they can focus on getting healthy."
