TOLEDO, Ohio — It's a reality for many of us; a trip to the doctor's office turns into something more and that leads to a bill you just didn't expect.
But now, Toledo City Council is looking at an option that could pay some of that medical debt off and it might help tens of thousands of people here in the Glass City.
"No one expects to get sick, no one expects to get injured, no one expects to have an anesthesiologist be out of network when they're in surgery," Toledo City Council member, Michele Grim said.
Those unexpected situations could lead to unexpected costs but City Council is considering spending $1.4 million of American Rescue Plan Act funding to erase some of it.
This proposal is unprecedented, as there is only one other place in the country doing something like this to relieve medical debt. Toledo City Council members are using the same framework by spending a small portion of the federal COVID relief money from the government.
The city would partner with non-profit RIP Medical Debt to buy debt from local hospitals at a cheaper price.
"One dollar could relieve a hundred dollars worth of medical debt. If you do that in multiples, you end up relieving a lot of debt for very little money," said RIP Medical Debt CEO, Allison Sesso.
Sesso says the non-profit has been able to clear $7 billion in medical debt since it was founded in 2014.
If Council approves this ordinance, that $1.4 million could wipe out anywhere between $180 to 200 million.
"We're going to get their bad debt files, so all of the bad debts that they've written off and tried to collect on but haven't been able to. Then we're going to put it through our proprietary debt engine and identify everyone who fits our qualification criteria," said Sesso.
The big question then, is who would qualify?
Sesso says the debt must be greater than five percent of your income or you have to make less than 4 times the federal poverty level.
Nearly 25,000 people who meet the criteria in Toledo could see their debts relieved.
"What I think it will mean for many Toledoans is putting food on the table, paying their rent, or going back to the doctor because they aren't afraid anymore that they have unpaid medical bills," said Grim.
The next step in this process is for City Council to vote. If it's approved, RIP Medical Debt can begin its process of getting the portfolios and paying them off.
If that happens, you'll get a letter in the mail if your debt makes the cut.
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