Wayne County Wipes Out $27M in Medical Debt, Relieving Over 46,000 Residents

Image courtesy of Wayne County’s Department of Health, Human, and Veteran Services

Wayne County’s Department of Health, Human, and Veteran Services (HHVS) has delivered a transformative holiday gift, announcing the elimination of $27 million in medical debt for over 46,000 residents. The debt, acquired from a local hospital dedicated to supporting the community, marks a major step toward reducing financial barriers to healthcare access.

Wayne County Executive Warren C. Evans highlighted since the announcement of this new program in March of this year, a program designed to wipe out more than $700 million in medical debt, he is extremely pleased to see the program’s success thus far in helping so many of our residents in need.

“These resources will help to eliminate the stress they have been under as they juggle how to pay for crushing hospital bills while keeping the lights on and putting food on the table at the same time,” Evans said.

Undue Medical Debt, a national 501(c)(3) nonprofit, specializes in purchasing sizeable medical debt portfolios at a fraction of their original cost often for mere pennies on the dollar. The organization focuses on assisting those least able to pay, including Wayne County residents whose income is at or below 400% of the federal poverty level or who face medical debt exceeding 5% of their annual income.

Undue Medical Debt CEO and president Allison Sesso says she is pleased to be working with Wayne County on this transformative partnership that will see medical debt relief for thousands of residents who are least able to pay these burdensome debts of necessity.

“Medical debt not only has negative financial implications, but it also weighs on families like an emotional albatross, preventing many from seeking necessary care and undermining health,” Sesso said.

“This program will help those in need right now and hopefully inform continued advocacy to stop the causes of these debts.”

Medical debt relief operates on a source-based approach, which means that the nonprofit organization can only obtain qualifying medical debts from specific providers that have entered into partnerships with them. These providers typically include hospitals, physician groups, and various healthcare facilities.

In addition to these medical providers, the nonprofit may also collaborate with debt buyers and collection agencies that handle medical debts. It’s important to note that individuals cannot directly request debt relief services; rather, the process is dependent on the partnerships established with these entities, ensuring that only eligible debts are considered for relief.

Dr. Abdul El-Sayed, Wayne County Health Director and Director of Health, Human, and Veterans Services, emphasized that this program addresses the national healthcare affordability crisis that affects Wayne County residents.

“Medical debt is a financial anchor on too many families, often forcing them to choose basic everyday needs or being forced to pay medical bills,” El-Sayed said.

We are proud to work with Undue Medical Debt to help bring a measure of relief to vulnerable families throughout Wayne County.”

Individuals receiving medical debt relief will get an envelope branded with the Undue logo in the mail this week, signed by County Executive Evans. This envelope will outline which specific debts have been forgiven. No action is required from the recipients; the purpose of this letter is to inform them about the program and to invite them to share their experiences.

Deputy Wayne County Executive Assad Turfe emphasized top priority as public servants is to do everything we can to make sure our residents are taken care of, to make their lives better.

“Removing the crushing burden of medical debt from 46,000 residents will go a long way toward making those lives better,” Turfe said.

The county has invested $5 million in this collaboration with the goal of erasing $700 million in medical debt. An additional $2 million could be added in the future should it be needed. On average, one dollar donated to the nonprofit relieves $100 of medical debt.

Wayne County Commission Chair Alisha Bell (D-Detroit) emphasized medical debt is crushing for far too many Wayne County families and individuals.

“Now the county has created a new partnership that will truly make a difference in helping thousands of residents get out from under the burden of that debt,” Bell said.

This program will be a model for other counties throughout the nation, and I can’t wait to share it with my peers at the National Association of Counties.”

The county government plans to expand its medical debt relief efforts, with more announcements expected soon. Residents are urged to watch for official notifications arriving by mail.

For more information about the Wayne County Program, visit www.waynecounty.com/medicaldebtrelief or email Medicaldebtrelief@waynecountymi.gov.

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