Joining national trend, D.C. to cancel $90M in residents’ medical debt

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Joining national trend, D.C. to cancel $90M in residents’ medical debt
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Health policy experts say that while medical debt cancelation helps individuals, the structural drivers of increasing tabs remain.

, which acquires qualifying medical debt from local providers such as hospitals and physician groups, CEO Allison Sesso said in an email Wednesday. Sesso said the nonprofit will likely apply for the D.C. grant.

Health policy experts say the practice will help people in the short term but does not address the structural factors driving the nation’s increasing debts. Nearly 18 percent of people in America had medical debt in collections as the coronavirus pandemic set in, according tomore likely to hold medical debt than white residents of the District, echoing a national trend, according toare more than five times more likely that White residents to be uninsured, UI reports.

Though the vast majority of D.C. residents have health insurance coverage — many through public insurance such as Medicaid — more than half of D.C. residents have private insurance, which often charges significant co-pays and cost-sharing, Turnage said. Stephen B. Jefferson Sr., the community outreach coordinator at Tzedek DC, has experienced firsthand the impact of medical debt.

Diagnosed in 2009 with stage four Hodgkin lymphoma and then a slow-growing form of bone marrow cancer, Jefferson said he is on a payment plan for $1,000 in bills from the Cancer Treatment Centers of America.Jefferson, 56, who was born in D.C. but lives in Upper Marlboro and is not eligible for the debt cancellation, said he is fortunate to have private insurance but said medical bills received weeks and months after a doctor’s visit or test can derail the uninsured and underinsured.

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