It was in the making for years. I find it fascinating that the state did something for its citizens and both Atrium and NBC are trying to take credit for it.
Atrium Health signs onto NC’s $4 billion medical debt relief plan
Charlotte’s Advocate Health agreed Friday to participate in the state’s medical debt relief plan. That’s a big win for Gov. Roy Cooper and other proponents, who estimate about 2 million residents would see about $4 billion in debt erased if all N.C. hospitals participated. Advocate owns Atrium Health, the state’s biggest hospital system.
Advocate waited until the last day of the state’s deadline for participation in the program. It calls for the state to pay hospitals up to $800 million – and considerably more in the following year – in federal Medicaid money if they agree to forgive medical debt that state officials say they would likely not have collected anyway. The plan also has provisions to prevent low-income residents from accruing future medical debt.
While Advocate agreed to participate in the program, it sent a note to state officials noting that state’s “good intentions” could lead to unintended consequences, such as:
-Health insurance costs spiking for businesses and individuals if the insurance risk pool shrinks with fewer participants paying premiums.
-Businesses could discontinue offering health benefits if their workforce qualifies for care that may be free.
-People could reject insurance coverage since hospitals are now directed to provide free or deeply discounted care, even to those who are commercially insured.
-Health systems in rural communities not be capable of accepting the policy’s requirements and face tougher economic struggles.
Thirty-seven of the state’s 99 hospitals had signed up to participate as of Wednesday. Those included hospitals affiliated with large systems such as Cone Health, UNC Health, ECU Health and Novant Health. Cooper and Kody Kinsley, head of the N.C. Deparment of Health and Human Services, held a press conference promoting the program in Charlotte on Wednesday, an apparent signal to Advocate.
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A little more here
North Carolina’s Effort to Relieve Medical Debt
Whatever though. I am happy for all the people whose debts were relieved. Thanks for sharing this.
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