January 3, 2023 – According to a report by The Louisiana Illuminator, the city of New Orleans is looking to relieve up to $130 million in medical debt. The New Orleans City Council included the proposal as a line in the city’s 2023 budget, which allocates $1.3 million in federal American Rescue Plan Act funds.
The medical debt will be bought by RIP Medical Debt, a nonprofit based in New Yorks that buys outstanding debt from healthcare providers and collection agencies. For residents to qualify, they must earn less than four times the federal poverty level, or the debt must be 5% or more of their annual income.
While the city’s contract with RIP Medical Debt hasn’t been finalized, the goal is to reach an agreement early this year.