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How an Indianapolis-area church erased $2 million in medical debt for Hoosier families
2019-06-17, Indianapolis Star/USA Today
https://www.indystar.com/story/news/health/2019/06/17/indiana-northview-churc...

Four times a year, Northview Church asks its members to chip in to a Dollar Club as an object lesson in the power of community. This weekend the Dollar Club also delivered a lesson in the wacky world of medical billing. Using an organization called RIP Medical Debt, the church was able to leverage $20,000 in donations to wipe out $2 million of unpaid medical bills for 2,500 Hoosier families. Founded five years ago, the New York-based organization has eliminated more than $675 million in medical debt for more than 200,000 people. RIP Medical Debt targets families most in need, those who are twice the federal poverty level or who carry debts that are 5% or more of their annual income. The process works in large part because of the structure of medical debt, experts say. “Medical debt has fairly low recovery rates and the amount of money that collectors are willing to sell this debt for is pennies on the dollar,” said Neale Mahoney, a professor of economics at the University of Chicago. The high cost of health care has led to rampant medical debt. About 43 million Americans owe about $75 billion in medical debt, according to RIP Medical Debt, and medical debt plays a role in more than 60 percent of all bankruptcies. As a member of Northview Church, Lisa Sole has been on both the giving and receiving side of the Dollar Club. Sole, now 53, never hesitated to donate when asked. Having gone through a medical crisis herself, Sole said she can only imagine what erasing someone’s medical debt could mean.

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