Over $6.5 billion in medical debt erased in North Carolina

RALEIGH, N.C. (WNCN) – On Monday, Gov. Josh Stein and North Carolina Health and Human Services Secretary Dev Sangvai announced more than $6.5 billion in medical debt has been forgiven in the past year.

According to the governor’s office, more than 2.5 million people from North Carolina were affected through the state’s Medical Debt Relief Program.

The governor’s office said the over $6.5 billion dollar number exceeded their projections for how much money would be relieved. That number included debt relieved through the program directly as well as additional debt relieved with hospitals updating policies to implement the program.

According to the governor’s office, people throughout the state have already been receiving letters from individual hospitals saying that their medical debt has been relieved.

In addition, Undue Medical Debt is sending out thousands of letters that tell North Carolinians that some or all of their debt was relieved.

The governor’s office said at least 255,000 letters are being sent out this week and that with more will come in the upcoming months and years.

“Medical debt is a tremendous weight keeping so many families from financial security, and, unlike most other forms of debt, it’s not a choice,” Stein said in a statement. “Today’s announcement will free people from financial stress so they can focus on getting healthy. I thank Gov. Roy Cooper, DHHS Secretary Kody Kinsley, and the hospitals that partnered with the State of North Carolina to make this life-changing news possible. I urge the General Assembly to keep this momentum going by coming back to the table and fully funding Medicaid.” 

“Medical debt delays access to care and easing debt is a pivotal step forward to improving the health and well-being of those who carry the emotional stress and financial weight of high costs for medical care,” Sangvai said. “We are grateful to the hospitals and providers who are helping to give a fresh start to millions of North Carolinians.”  

The Medical Debt Relief Program was established by former Gov. Cooper and Kinsley. The governor’s office said every eligible hospital in the state signed on to participate in August 2024.