TOLEDO, Ohio — Editor's note: The above video aired on Nov. 9, when council voted on the ordinance.
After months of delays, Toledo City Council voted 7-5 last week to approve a pared-down version of medical debt relief. Council approved $800,000 of ARPA funds to contribute for the proposal, which the Lucas County Commissioners pledged to match for a total of $1.6 million.
Now, medical debt relief is out of Toledo City Council's hands.
The next step is for the city of Toledo to enter into a contract with RIP Medical Debt. Allison Sesso, the nonprofit's president and CEO, said she is unsure how soon a contract will be signed, but expects it to move swiftly.
Currently, Sesso said RIPMD is in contact with hospitals, physician groups and other medical entities that debt can be bought from.
Once a contract is formalized between the city and RIPMD, the nonprofit would request the amount of money needed from the allocated $1.6 million to purchase the debt.
Sesso said RIPMD would likely buy "$100 million in debt, or $50 million in debt" at once.
On average, Sesso said $1 buys about $100 in medical debt. At Sesso's estimated rate $1 million would buy $100 million in medical debt.
The proposal did not pass easily, though. After its introduction on Sept. 13, it stalled for weeks, was held from a vote three times and amended to significantly decrease the ARPA funds contributed to $800,000 before it narrowly passed.
It initially proposed $1.4 million in total for medical debt relief.
Council members Matt Cherry, Vanice Williams, Theresa Morris, George Sarantou and Tiffany Preston Whitman all voted against the passage.
Council members John Hobbs, Theresa Gadus, Sam Melden, Nick Komives, Cerssandra McPherson, Katie Moline and Grim voted for the passage.
Grim said she thinks the Lucas County Commissioners' commitment swayed some council members in favor of the ordinance.
Even so, Williams and Sarantou held a press conference prior to the vote Wednesday to express their concerns about allocating the money.
Sarantou, chairman of council's finance, debt and budget oversight committee, said the proposed $800,00 should be used for public safety and park improvements.
"We just have to take care of public safety first," Sarantou said Wednesday. "That's why local governments were formed: to provide for public safety."
He said Toledo police and fire stations are often in need of upgraded equipment and renovations to their buildings, and dozens of parks in Toledo need new playground equipment, benches and tables. He specifically said two fire stations may need to be replaced "in the near future," with an estimated cost of $4-$8 million.
Williams, the council representative for district four, said two top priorities for ARPA funds came out of six public meetings: "safe and livable neighborhoods and public safety."
She also questioned the relief's equitability and how to ensure those most adversely affected by the COVID-19 pandemic and medical debt would receive help, which she said has not been answered.
She said her concern is putting the decision of what debt to sell in the hospital's hands could result in inequity.
"If there's hospitals in district four who decide not to sell the debt, guess who doesn't benefit? Those in district four," Williams said. "This is too fluid, it's too open, it's too convoluted and it's like writing a blank check."
Williams also questioned if those who have debt relieved will receive a 1099 tax form. Sesso said there will be no tax liabilities for those who have debt relieved.
"We have abolished debt for over four million people and not one of them has had a tax liability because we are a disinterested third party," Sesso said.
Sarantou suggested Grim wait until she began her role representing the Ohio House of Representatives on Jan. 3 to push for medical debt relief for Toledoans, because "that's where the money is at."
"Toledoans are suffering now," Grim said, after briefly laughing when asked about Sarantou and Williams' press conference.
She cited inflation and the strain of medical debt as reasons why the ordinance needed to be passed.