General Treasurer Diossa announces a medical debt relief program
by NBC 10 NEWS
(WJAR) — General Treasurer James Diossa announced a medical debt relief program on Tuesday.
Diossa said the state has partnered with Undue Medical Debt, a charity that purchases medical debt from healthcare providers.
The Medical Debt Relief Program will look to help those saddled with medical debts, according to a release from Diossa’s office.
During the 2024 legislative session, the General Assembly passed legislation creating a medical debt relief program and for it to be administered by the treasure’s office, officials said.
The legislature funded the program with $1 million, to be used for the “purchase, cancellation and forgiveness of medical debt.”
“The financial constraints brought on by unaffordable medical bills drive people to defer needed medical care, leading to a cycle of debt, distress, and unresolved, potentially escalating health issues,” said Diossa. “This new program is a critical resource to protect Rhode Islanders’ finances, dignity, and health.
Rhode Island State House. (WJAR)
According to officials, Undue purchases debts using government grants and charitable donations.
Once Undue purchases a medical debt, it works to identify those Rhode Islanders who are eligible for the debt forgiveness program.
“Any healthcare provider holding medical debt owed by a Rhode Island resident can partner with the state to participate in the Medical Debt Relief Program,” the Office of the General Treasurer said in a release.
State officials said Rhode Island residents who incurred in debt to obtain medical treatment and has an estimated income equal to 400% or less of the federal poverty line or has a medical debt that is more than 5% of their estimated income are eligible for the program.
According to officials, eligible Rhode Islanders will receive a letter directly from the Office of the General Treasurer and Undue that will show the amount of debt forgiven and the former holder of the debt.
There is no application process for the program.
“Too many Rhode Islanders are one medical crisis away from financial ruin,” Speaker K. Joseph Shekarchi said in a statement. “Medical debt can accumulate quickly and become a deterrent to seeking needed healthcare. This new program will bring real results for hundreds of families and enable them to have a clean state.”
More about Rhode Island Medical Debt Relief Program can be found on theOffice of the General Treasurer’s website.