(WXYZ) — Overcoming massive medical debt is the focus of a new cutting edge initiative being rolled out in Oakland County.
The county executive announced a plan Thursday allowing for millions of dollars to be forgiven with the help of federal dollars.
Whether it’s an urgent care or hospital bill, the county's new plan will help families end about $200 million in medical debt.
It's a move inspiring hope and pledging to help take on soaring medical bills more than a 100,000 people in the county face.
“You come home from work and got bills. They called my mom. I was getting ready to die and they were worried about getting a bill paid," said Kyra Taylor.
Having lived with medical debt that’s felt crushing, today’s announcement is bringing relief to Taylor who’s now had debt forgiven, allowing for other bills and day-to-day living costs to become a greater focus as inflation continues to be a factor.
"Even in a county as wealthy as Oakland County, lots of folks carry medical debt bringing them down impacting their lives," said Dave Coulter, Oakland County executive.
He added, "a quarter of a million people in this county did a GoFundMe page to pay for medical debt. A quarter of a million. It’s not right.”
The plan is part of a partnership with non-profit RIP Medical Debt.
We’ve learned the program is committing to eliminate roughly $200 million in medical debt by using 2 million in the American Rescue Plan Fund to buy medical debt at a fraction of the cost, then forgive the debt of those impacted.
More families we talked to and a bankruptcy law expert doubled down on what this means, including helping protect credit scores and mental health.
“I have three kids myself, I think when bills add up with groceries and kids, along with other expenses, any help the county can provide is a huge bonus," said Erica Daenzer, who supports medical debt forgiveness.
"Insulin alone is $100 a bottle. I had to cut back on bills and medicine just to survive," said Taylor.
John Kallabat, a bankruptcy attorney, says he's noticed a trend the last few years.
“I’ve had quite a few people, even more so in the last 2-3 years, that have filed bankruptcy specifically for medical debt," said Kallabat.
The burden of medical debt on working families is also key in how some approach whether or not to seek treatment according to those we spoke with.
A report from the American Hospital Association noting that high deductibles and slimmer health plans also lead to more gaps causing vulnerability.
“I work for a mortgage company. Attend school ... all because RIP paid my debt," said Taylor.
She added, “I called my attorney and he said 'your debt is gone.' I called and said 'I can’t believe it.' This has given my life back.”
The county says it's planning to provide help by proactively coordinating with five hospital systems within 1-2 months.
They say anyone who lives in Oakland County will be eligible, regardless where services are received.
“Medical expenses for people are just skyrocketing. I think a program like this will definitely help people making ends meet," said Kallabat.
The county executive says medical debt is the number one source of bankruptcy in the U.S. — one reason it’s a top priority to help tackle this issue.
