COLUMBUS, Ohio — More than 340,000 Columbus residents will have their medical debt forgiven after a partnership between the City of Columbus and Columbus-area hospitals.
City Council President Shannon Hardin and President Pro Tem Rob Dorans announced that they plan to pass legislation at Monday’s meeting for a deal that will forgive $335 million in medical debt. The debt forgiveness is being dubbed the first-of-its-kind by the city and all major Ohio hospitals are collaborating.
Hardin and Dorans will sponsor a $500,000 nonprofit contract with Central Ohio Hospital Council to pay off administrative fees associated with notifying residents of their relieved debt.
Those eligible for the debt forgiveness will be notified by letter as soon as this week.
"All too often medical debt becomes a financial albatross for working families; as it's the leading cause of bankruptcy in the United States,” said Dorans. “Families should not have to choose between putting food on the table and accessing needed medical care. While Columbus City Council does have the power to restructure America's healthcare system; this legislation will bring increased economic stability to working families in Columbus that have been saddled with medical debt."
The participating hospital council consists of four members from Mount Carmel Health System, Nationwide Children's Hospital, The Ohio State Wexner Medical Center and OhioHealth.
The debt relief would cover patients treated at any of the four area hospitals from 2015 to 2020. Eligible residents must make an income between 200 to 400% of the federal poverty level or between $55,000 and $111,000 for a family of four. Those who make below 200% of the poverty level will not be billed for any medical care they receive.
The average debt that will be relieved per patient is $984, according to a release from the city.
“Medical debt is an insidious problem – impacting both the insured and uninsured alike,” said Columbus Mayor Andrew Ginther. “No one should have to face the prospect of financial hardship because they sought care when they needed it most. Forgiving this debt will go a long way toward helping our fellow neighbors rebuild their savings, pay off their bills, qualify for a loan, make a down payment on a car or support our local businesses."