Yesterday, the Los Angeles County Board of Supervisors unanimously passed a set of proposals concerning medical debt. The motion, created by Board Chair Janice Hahn and co-authored by Supervisor Holly Mitchell, serves as a pivotal attempt to lighten the impact of medical debt on local households .
Given the significant role of medical debt in exacerbating poverty and delaying necessary medical care, the approved proposal includes several strategies to lessen the toll of debt. The County will mandate hospitals to disclose data concerning debt-collection and financial assistance, consider buying residents' debt for a fraction of its value, and establish fresh policies and procedures to diminish medical debt.
Organizations like RIP Medical Debt have successfully bought and retired medical debt for eligible individuals, usually at a reduced cost. As per RIP Medical Debt, on average, retiring $100 of medical debt costs $1. The Department of Public Health believes that a $24 million investment could potentially retire about $2 billion in medical debt for LA County residents .
In an all-encompassing approach, the motion also advocates for the creation of a new decree, obliging hospitals to provide data concerning debt-collection and financial assistance. This will be made available to the public through a new online dashboard, promoting openness and responsibility. To curb further accumulation of debt, County departments will analyse and propose new strategies to reduce medical debt, such as increasing access to financial and legal aid.
This action comes at a critical time when many, especially essential workers and Black, Latinx, and low-income families, grapple with medical debt, following the COVID-19 pandemic. Medical debt is a pressing issue for almost one in ten adults in the County, with the total sum surpassing $2.6 billion. Residents from lower-income brackets, as well families with children and people with chronic health problems, are particularly affected. A report by the LA County Department of Public Health indicates, residents with medical debt often struggle with food insecurity and housing instability, with nearly half unable to afford necessary expenses due to medical bills.
The impact of medical debt goes beyond mere financial strain. The Western Center on Law and Poverty’s Executive Director Crystal Crawford and Senior Attorney Helen Tran assert in their letter of support for the motion, that medical debt, often, hinders individuals from seeking medical care and exacerbates food and housing insecurity. This motion, therefore, signifies an important step forward in addressing these concerns on a larger scale, focusing on the population health and wellbeing of LA County residents.
Dr. Jerry P. Abraham, President of the Los Angeles County Medical Association, offers similar sentiments, labelling medical debt as a public health emergency and significant deterrent for patients seeking timely care. To tackle this urgent issue, medical professionals, the LA County Board of Supervisors, and the Department of Public Health have collaborated to devise appropriate solutions.
The motion also includes a deadline of 90 days for a report on the feasibility of purchasing and retiring local residents' medical debt. The report will additionally discuss potential County, State, Federal, and philanthropic funding sources to support this initiative.
