MILWAUKEE — An effort to erase millions of dollars in medical debt for Milwaukee County residents is moving forward.
The American Rescue Plan Act Task Force just voted to send this proposal to the finance committee, and if they approve it, to the full county board.
Milwaukee County Supervisor Shawn Rolland proposed the resolution, that asks for $1.6 million in ARPA money to go toward a partnership with RIP Medical Debt and wipe out $153 million in medical debt.
"RIP would serve as a sub-recipient for the ARPA funds, contract with the local hospitals, and then ultimately sending out letters to those hopefully 67,000 letting them know that their debt has been abolished," Rolland said.
RIP Medical Debt, a national nonprofit, works with health systems to acquire and abolish that money owed. So far, the organization has done similar work in several communities including Cook County in Illinois, Pittsburgh, Atlanta, and New Orleans, and Washington, D.C.
"A lot of people are hurting themselves financially as they are trying to pay off this medical debt," said David Eager, a retired healthcare executive and current ambassador for RIP Medical Debt.
To be eligible, the patient's household income must be between 0-400% of federal poverty guidelines, or the medical debt makes up 5% or more of the annual household income.
In this scenario, county funds would only apply to Milwaukee County residents.
"This enhances health equity, and it addresses the social determinants of health. Lastly, believe it's a benefit to the hospital because they can sell uncollectible patient receivables," Eager explained.
Jeff Roman, director of Milwaukee County's Office on African American Affairs and task force member, was supportive but requested the county play a role in facilitating engagement with partners.
"I think that's going to be important and crucial in terms of engagement in partnerships, and thinking through how to make sure this gets to who it needs to get to," Roman said.
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Correction: The proposal now heads to the county's finance committee, not to the full county board.
