close
close

Mondor Festival

News with a Local Lens

St. Paul to erase nearly  million in medical debt for 32,000 residents
minsta

St. Paul to erase nearly $40 million in medical debt for 32,000 residents

St. Paul Mayor Melvin Carter plans to announce nearly $40 million in medical debt relief for thousands of city residents on Tuesday.

What we know

Mayor Carter will hold a press conference at 9 a.m. Tuesday to discuss eliminating medical debt for 32,000 city residents. The press conference can be watched live in the player above and on the FOX 9 YouTube channel.

The Medical Debt Reset Initiative was proposed by Mayor Carted during the 2024 budget speech and planned to use $1.1 million in American Rescue Plan funds to help provide debt relief medical cost estimated at $110 million for eligible St. Paul residents, according to a news release. release.

During the press conference, Minnesota Attorney General Kieth Ellison is expected to discuss the need for statewide medical debt relief.

Background

The city previously announced plans to partner with the national organization RIP Medical Debt, for the program. There was an income test for residents, but for every dollar invested, $100 of medical debt is alleviated. At least four large local health systems have supported the initiative, including M Health Fairview, HealthPartners, Allina Health and Children’s.

RIP Medical Debt previously said the initiative would help improve patients’ credit scores and increase access to medical care. City leaders have noted that medical debt is more prevalent in communities of color.

“This program isn’t just about wiping out debt; it’s about giving people a chance to breathe, rebuild and get their lives back on track without the weight of medical bills crushing their aspirations,” Carter said in august.

Other laws aimed at easing the burden of medical debt took effect this year. Minnesota Governor Tim Walz signed the Debt Fairness Actwhich prohibits the automatic transfer of medical debt to a spouse, prohibits reporting medical debt to credit reporting agencies, and prohibits denying necessary medical care based on unpaid bills.

From Octoberhealth care providers can no longer refuse “medically necessary treatment or services” because of a prior unpaid debt. And for those facing an outstanding balance, collection agencies are imposing new restrictions on how they collect medical debts.