Orange County is on the verge of making a significant decision that could erase the medical debts of over 150,000 people. As reported by WESH, county commissioners are deliberating a proposal today that involves teaming up with a nonprofit called Medical Debt Resolution Inc. to identify those plagued by bills and clear their outstanding medical debts. The money for this cause, amounting to $4.5 million, comes from the American Rescue Plan Act, signaling a use of federal funds for palpable local impact.
Set to roll out if commissioners give the nod, the debt relief initiative promises to extend aid to those whose household income falls beneath the limits – $124,800 for a family of four, according to WESH. Additionally, individuals saddled with medical debts amounting to or exceeding 5% of their income could qualify. Central Florida's major hospital systems, Orlando Health and AdventHealth, are willing to take part in this stimulus.
While the proposal has been met with favor in earlier sessions, some commissioners expressed concerns that it would predominantly cover new hospital bills, potentially leaving out those whose dues have been traded off to collection agencies. A point that could certainly sway the final decision, given the extent to which debt collection practices can exacerbate financial distress.
Today, at 9 a.m., the county commission meeting will tackle the decision, as detailed by WFTV. This program, besides erasing select medical debts stemming from the COVID-19 pandemic, also aims to educate eligible residents about accessing hospital charity care and finding medical help that is either free or low-cost, as well as to assist financially.
