Government Partners — Undue Medical Debt
We have a new name — RIP Medical Debt is now Undue Medical Debt.
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Starting with Cook County in 2022 and soon after followed by the City of Toledo. February of 2023 the White House released a Fact Sheet approving American Rescue Plan funds being leveraged for medical debt relief. Undue has since formally partnered with over 10 local governments around the country with dozens more in the works. 

The impact of debt

Debtors are 3x more likely to struggle with anxiety/depression. Debt erasure provides financial relief but it also benefits people’s mental health.

84% of U.S adults agree that it is “the responsibility of the government to ensure health care is affordable for all people in the U.S.”

$1 dollar relives $100 in Medical Debt. 

Current Partners

Featured Government Partner

Cook County was the first municipality to leverage ARP funds for medical debt abolishment in partnership with Undue. To date we’ve erased over $280 million of medical debt for county residents. 

Frequent Questions

How do people apply for debt relief?

There is no way to apply for this program. Undue Medical Debt performs an analysis of hospital debt portfolios and identifies qualifying accounts. All accounts that qualify (typically a significant percentage of accounts) will have their debt canceled and will be notified without taking any action. They can only cancel medical debts if hospitals and health systems located in the area sell or donate portfolios of medical debt to Undue.

Where does funding come from to retire this debt?

In some cases governments are using American Rescue Plan act funds from the federal government, designated for economic relief after the worst days of the pandemic. Others are using general funds that have been appropriated for the express purpose of medical debt relief. Undue is a sub-recipient of these funds and leverages them to buy qualifying debt as it becomes available.

What is the role of providers (hospitals) in these efforts?

Participating hospitals will enter into a Business Associate Agreement and a Non-Disclosure Agreement with Undue Medical Debt to protect the confidentiality of patient health information and other aspects of the transactions. The hospitals will send account data files to Undue for analysis. Once accounts for qualifying individuals have been identified, hospitals will make decisions on selling and/or donating accounts to Undue. Some hospitals may decide to make their participation public. Others may keep their participation confidential. Either way, patients will be notified of their debt relief.

How will these programs impact provider finances?

These programs will focus on patient accounts that are anywhere from 18 months to 7+ years old (measured from the date services were provided) and after the billing and collections process have been completed. Importantly – even though collections activities may have stopped – the medical debts remain outstanding and may continue to have negative economic and health impacts on residents. Overall, the impact on hospitals’ finances will be positive if they sell medical debt to Undue for cancelation.

How long does it take for medical debt relief once a government partner has signed on with Undue?

Each municipality is different so there’s no guaranteed timeline. Due diligence is essential to ensure both the government partner and local providers are aligned with the program’s goals. Governments provide the funding and providers like hospitals furnish the qualifying medical debt and Undue facilitates the debt abolishment so coordination is key.

Which providers will Undue partner with?

Any hospital located in the area of interest can partner with Undue Medical Debt and participate. Nonprofit, for-profit and government run providers are all welcome to sell or donate medical debt. In certain cases, government funds cannot be used to acquire medical debts from government run hospitals. In those instances, Undue Medical Debt would raise and/or use funds from its donor base to acquire that medical debt.

Will Undue also purchase medical debts for residents not in the area of interest (the county, city or state)?

Yes, if a provider has past-due accounts for individuals not in the area of interest Undue Medical Debt will use private funds to acquire those qualifying medical debts.

Learn more about how a partnership can benefit your local community.