How does the medical debt forgiveness program work?
The City of Toledo has partnered with Undue Medical Debt to purchase debt portfolios from healthcare providers at a reduced cost. These debt portfolios are then abolished on behalf of Toledo residents, providing substantial relief from medical debt burdens.
Can residents apply directly to have their medical debt abolished?
No, residents cannot apply directly for the program. The debt portfolios are purchased by Undue Medical Debt from healthcare providers. The City of Toledo does not have control over the selection of the debt portfolio and cannot choose whose medical debt is abolished.
How are beneficiaries notified about the abolishment of their medical debt?
Beneficiaries will receive a letter in the mail informing them that their medical debt has been abolished. If you have received a letter, there is nothing more you need to do. The debt has already been abolished on your behalf, you don't need to make any additional payments.
How much medical debt has been abolished through this program?
More than $230 million in medical debt has been abolished for Toledo residents so far. This represents medical debt accumulated by 112,000 local patients in the Bon Secours Mercy Health and ProMedica Health systems.
How is this program funded?
The City of Toledo has allocated $800,000 of American Rescue Plan Act funding for this program. The Lucas County Commissioners have also allocated $800,000 to increase the number of beneficiaries in Toledo and Lucas County.
Why are you doing this?
Abolishing medical debt relieves people of the burden caused by unplanned and unexpected healthcare costs. Medical debt is a leading cause of bankruptcy in the U.S., and this program aims to enhance economic opportunities and enable healthier lives by abolishing these debts.
Will there be future opportunities for residents to benefit from the medical debt abolishment program?
A second round of debt relief may be coming later this year, depending on funding availability. Residents are encouraged to stay updated through official announcements from the City of Toledo regarding any future initiatives or expansions of the program.
Who is Undue Medical Debt?
Undue Medical Debt is a not-for-profit, national charity that raises funds from donors to acquire and abolish medical debt. Since its founding in 2014, Undue Medical Debt has abolished over $9 billion of medical debt, helping more than 6 million people.
For Beneficiaries
Beneficiaries will receive a letter in the mail informing them that their medical debt has been abolished.
What do I need to do?
If you have received a letter, there is nothing more you need to do. The debt has already been abolished on your behalf, you won't receive a direct payment and don't need to make any additional payments to your account.
Are there strings attached?
No, there are no strings attached. The debt referenced in the letter is permanently abolished.
Do I have to pay taxes on this?
No, you do not have to pay taxes on the abolished medical debt. The debt was abolished as a charitable act eliminating any potential tax consequences for beneficiaries.
Why was my credit report pulled?
A "soft inquiry" into your credit history was made to determine your eligibility for medical debt relief by RIP. Soft inquiries are listed on your credit report but do not impact your credit score.
Was all of my debt abolished?
Our goal is to abolish as much debt as possible, but due to complexities in the healthcare finance system, it's possible that some debts were abolished while others remain outstanding.
Who can I contact with questions?
If you believe the listed debt has already been paid or wasn't owed by you to begin with, please contact Questions@UndueMedicalDebt.org.