The City of Akron has recently announced an update on its innovative medical debt relief program, aiming to alleviate the financial strain on its residents. Spearheaded by Mayor Shammas Malik and the city council leadership, the program hasn't yet billed the city for debts it has acquired but is actively working with local hospitals to implement the relief efforts. The initial allocation of $500,000 from the American Rescue Plan Act (ARPA) funds is being shifted to the city’s general fund to allow more flexibility in spending and timing, detailed in a City of Akron official release published early today.
In partnership with Undue Medical Debt, the non-profit formally known as RIP Medical Debt, the program works to buy and forgive medical debt for residents earning at or below 400% of the poverty line or those overwhelmed by debt exceeding 5% of their annual income. "Our administration remains very supportive of helping to eliminate medical debt for Akron residents in need," Mayor Malik stated through the City of Akron, emphasizing the potential of the program to relieve residents from the crushing weight of medical debt. "If residents aren't struggling with medical debt, they can better afford everyday necessities like food, rent, or receiving regular medical care," he further explained.
While the initial discussions with hospital systems were geared towards a $500,000 capacity for debt relief, current projections suggest that a $250,000 commitment might be more feasible soon, with ongoing plans to expand over the next several years. The program uniquely positions itself by purchasing medical debts for pennies on the dollar through secondary markets, including collection agencies, and directly from healthcare providers, leveraging every dollar to eradicate an average of $100 in debt.
Council President Margo Sommerville echoed these sentiments, noting, "We are getting creative with our funding solution to make sure that not only can we see this program through to completion but also ensure that we aren't forfeiting any ARPA dollars in the process." Should Undue Medical Debt not manage the full $500,000, the remaining funds are set to bolster the Akron Cares program, further supporting residents with overdue water and sewer bills. Shifting funds from specific ARPA allocations to the general fund will also cover fixed costs on projects such as community center renovations and the city's annual contract with Summit County Public Health, ensuring more predictable financial planning.
The substitution of projects under ARPA funds reflects the city's intent to efficiently utilize the $145 million allocated to Akron, ensuring other approved contracts and programs can successfully move forward. A comprehensive list of substituted ARPA projects has been made available for public perusal, maintaining transparency in the city's financial adjustments.
