North Carolina has achieved a milestone in medical debt resolution that patients across the country may be wishing would happen in their states. According to The Carolina Journal, more than $6.5 billion in medical debt has been eliminated for more than 2.5 million North Carolinians in the past year.
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The state’s Medical Debt Relief Program was started in July 2024. As noted by the Journal, there are some concerns about shifting the burden of unpaid medical bills from patients to federal taxpayers. Keeping medical debt concerns in mind, here’s what some financial experts told GOBankingRates about the possibility of this type of program playing out in other states.
An Example of What Might Work
“What North Carolina has done has set the example of what’s possible,” said Melanie Musson, a finance and insurance expert with Quote.com. “The medical debt program obviously helps people who owe medical debt, but it also benefits hospitals because these debts are often never paid by the patients.”
Musson said it’s essential to note that North Carolina is collaborating with hospitals on debt repayment when the hospital is willing to work toward avoiding medical debt. One way hospitals can prevent debt is to automatically enroll low-income patients in charitable programs that pay medical expenses.
“The program would work best throughout the country if states adopt something similar and adapt it to fit their individual needs, taking into account their own regulations and laws,” Musson said.
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Downsides To Consider
Brandon Gregg, certified financial planner and advisor with BBK Wealth Management, said what was done in North Carolina is likely possible for any state, but there may be some downsides to consider.
“Adding this type of program would mean major budget moves,” Gregg said. “These budget changes can cause local governments to make up for it with tax changes that would then in turn directly hit the ones they are trying to help with the new program.”
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This article originally appeared on GOBankingRates.com: One State Erased $6.5 Billion in Debt for Millions — Can Your State Do It Too?
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