Billions in medical debt erased for more than 2.5M North Carolinians via relief program

RALEIGH, N.C. (WTVD) -- Governor Josh Stein announced on Monday that through North Carolina's Medical Debt Relief Program, more than $6.5 billion in medical debt has been relieved for more than 2.5 million North Carolinians over the past year.

"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," said Governor Josh Stein.

"Today's announcement will free people from financial stress so they can focus on getting healthy."

The announcement surpasses the initial financial projections for the Medical Debt Relief Program, which was established in July 2024. The initiative relieves existing medical debt and prevents the accumulation of more in the future.

North Carolinians across the state have begun receiving letters from individual hospitals sharing that this medical debt has been relieved.

The Centers for Medicare and Medicaid Services (CMS) approved using medical debt policies as a condition of eligibility for North Carolina hospitals to receive an enhanced level of payment under the Healthcare Access and Stabilization Program (HASP), a program that began at the same time as Medicaid expansion.

Neither Medicaid expansion nor HASP required the use of state funds.

To be eligible for the enhanced HASP payments, hospitals were required to relieve medical debt for certain low- and middle-income North Carolinians and adopt more generous charity care policies.

Additionally, hospitals were required to strengthen and streamline processes for determining eligibility for charity care/financial assistance and end the reporting of medical debt to credit agencies.