(The Center Square) – Lucas County and the city of Toledo, along with one of the city’s largest health care providers, reached an agreement to wipe out more than $222 million worth of medical debt for area patients.
State Rep. Michele Grim, D-Toledo, made the announcement that is expected to impact 108,737 residents. ProMedica is the second health care provider in the area to abolish debt.
Grim was a member of the Toledo City Council when 41,000 Lucas County residents had a total of $240 million in medical debt eliminated.
“The abolishment of medical debt takes away a burden that too many in our community are struggling with day after day,” Grim said. “No one should have to decide between making a payment to a debt collector for life-saving medical care they needed or putting a meal on the table for their family. Abolishing medical debt alleviates families of these decisions.”
Toledo will buy back more than $69 million worth of debt, and Lucas County will buy back more than $14 million. WTOL in Toledo reported the City Council and county commissioners allocated $1.6 million to a nonprofit to buy the debt.
Patients will be informed by letter if their medical debt has been selected to be eliminated.
As previously reported by The Center Square, Pennsylvania Gov. Josh Shapiro proposed wiping out $4 million worth of medical debt for lower-income people in his proposed budget.
The governor wants the state to hire a private vendor for $400 million worth of debt for residents living at or below 400% of the federal poverty level – or up to $60,240 for a single person and $124,800 for a family of four.
Obligations totaling 5% or more of a person’s income would also qualify under the program.
In March, Arizona Gov. Katie Hobbs launched a program to buy back medical debt with taxpayer dollars distributed by the federal government.
Arizona’s contract with a nonprofit will provide up to $30 million in funds from the American Rescue Plan Act.
