Recently, there was a story about a Moravian Church who purchased and forgave million of dollars of medical debt. The Trinity Moravian Church in Winston-Salem started the Debt Jubilee Project to help people in the local counties who are burdened by the outrageous medical debt system.
For some background: Healthcare spending per capita in the U.S.
was $12,914 in 2021, $5,000 more than any other high-income country. Unregulated
costs, complex administrative bureaucracy (often related to sorting out
insurances’ coding and billing), and for-profit medical businesses inflate the
costs of receiving medical care. There is an estimated $195 billion in U.S.
medical debt, larger than the entire economy of Greece. According to the U.S. Census Bureau, 19% of
households could not afford to pay for medical care upfront in 2017. Four
percent of households held high medical debt (more than 20% of annual income).
It’s a problem not seen on a such a scale in developed countries that treat healthcare
as a public service for the good of the citizens.
When someone has an outstanding medical bill, the medical office will hire a debt collection agency to collect the payment. The collection agency, if there is still no payment, will bundle and sell debts on to a third-party collection agency, usually for pennies on the dollar so that they can recoup some of the loss ($1 is better than $0, even if the bill was $100). The medical office gets what it can and has to write off the rest. The third-party agency can do whatever they want with the debt. Usually, they try to collect it (make money). But in cases like this church, they forgive the debt. For around $15,000 the Trinity Moravian Church forgave $3.3 million of medical debt this year.
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