Pittsburgh Erases $58 Million in Medical Debt for 43,000 Residents
Thousands of residents in Pittsburgh are receiving notifications this week that their medical debt has been erased, thanks to a city initiative that has canceled approximately $58 million in medical bills for over 43,000 individuals. This significant debt relief follows a law passed by the city council two years ago, which allocated pandemic relief funds to address the growing burden of medical expenses.
The initiative, executed in partnership with the nonprofit organization Undue Medical Debt, utilized charitable donations to negotiate substantial discounts and purchase debts from hospitals and debt collectors. Remarkably, the city invested less than $500,000 in total to facilitate this cancellation. Eligible residents automatically benefited from this program if their household income fell between 0% and 400% of the federal poverty level or if their total medical debt exceeded 5% of their annual income.
Councilman Bobby Wilson, who sponsored the legislation, expressed optimism about the program’s impact on residents. “No one should have to be burdened with medical debt, I believe, just because you got sick,” he stated. The relief initiative, however, does not include debts owed to UPMC and Allegheny Health Network, as these organizations do not sell their medical debt to third-party entities.
In response to the program, Dan Laurent, representing Allegheny Health Network and Highmark Health, emphasized their commitment to patient care regardless of financial status. “For those who are uninsured or underinsured, we have a robust financial assistance program that works with patients to help them understand their insurance coverage, pay their medical bills, or connect them with the right government assistance programs if they are eligible for that support,” Laurent explained.
Officials at UPMC echoed this sentiment. Susan Manko, vice president of public relations, noted that the provider does not turn away patients and does not initiate legal actions against them. “We have a strong patient advocacy team that works daily with patients and families to educate them about financial aid they may not be aware they are eligible for,” she said.
The origins of the medical debt that has been canceled remain somewhat unclear, according to Courtney Story, vice president of government initiatives at Undue Medical Debt. The organization acquired the debt from the secondary market, which typically includes expenses from hospital stays, emergency room visits, and various medical services. Story remarked on the emotional relief that debt cancellation brings, stating, “We hear that folks are returning to care. They’re less afraid to go to the hospital if they’re sick; they’re more likely to get preventative care because they’re not afraid of being required to pay that debt that they owe.”
While many advocates for healthcare affordability praised Pittsburgh’s efforts, they urged lawmakers in Harrisburg to take additional steps to prevent medical debt from accruing in the first place. Antoinette Kraus, executive director of the Pennsylvania Health Access Network, highlighted the prevalence of medical debt in the state. “Medical debt is incredibly common in Pennsylvania, with recent data showing that 1 in 3 Pennsylvanians are struggling to pay their medical bills and 1 in 4 are experiencing medical debt,” Kraus noted.
The ongoing challenge of medical debt in the United States is substantial, with estimates indicating that Americans owe more than $220 billion for medical care. Advocates are calling for the passage of House Bill 79, which aims to tackle the root causes of this financial burden and improve access to affordable healthcare for all residents.
