Citizens of Connecticut woke up Friday morning to learn that roughly $1 billion dollars worth of medical debt will be forgiven by the state, Governor Ned Lamont (D) announced on Good Morning America. A few cities have already done this but this is the first instance of a state doing it, setting a precedent for others to emulate.
This relief package will come from a $6.5 million fund from the American Rescue Plan Act in 2021 that aimed to cancel medical debt. The state will work with a nonprofit that purchases medical debt at a reduced rate to erase the debt by June this year.
‘Connecticut residents at up to 400% of the federal poverty level, or $156,000 for a family of four, will be eligible, as well as those whose medical debt is over 5% of their income. The program will prioritize single parents, according to the report,’ the Hartford Courant added.
The state says 1 in 10 residents in the state have medical debt collections.
This is not something they did because they were spending too much money, this is something because they got hit with a medical emergency. They should not have to suffer twice – first with the illness, then with the debt.
I think it’s really important that people have a sense that they can start building wealth of their own. We’re making that easier for people to do – and the best way to start is eliminate the debt you’ve got.
Lamont told GMA
Lamont has been wanting to do this for some time after he introduced the idea a year ago, saying he would use $20 million to cancel billions in medical debt. He said at the time:
This initiative will not only help Connecticut residents who are saddled with debt financially, but it also lifts the significant emotional toll that this type of debt has on individuals who do not have the means to get out from under such crushing debt, especially for those who are simultaneously experiencing significant medical problems.
In response to Lamont’s action House Republican leader Vincent Candelora blasted the move and what this spells moving forward:
The Governor’s celebratory lap over his move to use taxpayer dollars to pay off bad medical debt carried by hospitals is a slap in the face to residents and organizations who want adequate funding for government’s core functions but time and again see his administration and the Democrat-controlled legislature prioritize spending to support policies from their agenda that are far outside of that scope.
The Governor may enjoy the headlines he’s getting from this, but I have little doubt this policy decision will disappoint people with debt who don’t qualify for relief and frustrate organizations and officials as capitol conversation continues about meeting needs such as local special education costs, heating assistance for vulnerable residents, and investing in Medicaid rates for all residents.
Candelora said in a statement Friday.
Connecticut has now set a precedent and the question arises if more states will follow in their footsteps. GMA noted in their report:
A 2022 analysis of government data by the KFF-Peterson Health System Tracker estimated that 9% of adults – approximately 23 million people – owed more than $250 in health costs. Those more likely to report significant medical debt included people living with a disability, uninsured adults, low-income adults and Black Americans, the report found.
As governments look to address the issue, cities and counties nationwide are using American Rescue Plan funds to provide medical debt relief. According to the White House, $16 million in the stimulus funds are being used to purchase and wipe out nearly $1.5 billion in medical debt in communities nationwide, including New Orleans; Pittsburgh; Toledo, Ohio; and Cook County, Illinois, home to Chicago.
Elsewhere, New York City recently announced a plan to invest $18 million to erase $2 billion in medical debt for up to 500,000 eligible New Yorkers over the next three years.
In other measures addressing the burden of medical debt, Colorado last year passed a law removing medical debt from credit reports — becoming the first state to enact such legislation.
AUTHOR COMMENTARY
Wait, what? He’s going to use $6.5 million to pay for $1 billion? Well, that still leaves you with $993.5 million. And we are to assume these non-profits are going to eat all that crunch? Smells like more taxes are coming.
Democrats love shilling debt forgiveness. It buys votes from ignorant and naive people, particularly younger generations, who think money grows on trees and are no consequences to going into debt. Yes, I am fully well aware that modern medical fees are astronomical and literal rape of your wallet – debt that can wipe you clean for an indefinite period of time: but making everyone else pay for it is no better to say the least.
Therefore, do everything you can to stay in tip-top condition, don’t get reckless, and try to learn how to heal yourself in different ways.
You this will cause other blue states, and possibly even a few reds to do this in order to nab some votes this year. But the debt does not fly away to money heaven: it must be serviced and paid-off by someone; and that someone is you, via taxes, inflation and money-printing.
[26] Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee? Proverbs 22:26-27
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Debt is growing in America like mold. But knowing that it’s God’s judgement, par for the course.
The economy is going down, and also I saw that dozens of colleges and universities are closing, good! Useless majors, Godless atheist philosophies, an endless plethora of sin and temptations, and crippling debt even for non-graduates.
Another shill, shilling for votes; no more no less.
I’d just like to get incorrect billing corrected. Going on a year now over a stupid in-system routine office visit. We paid the portion we were contractually required to pay. Then there was the thousand buck slam for the ‘your medical equipment is paid off, sir’ …..a year after covid pneumonia.
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Such a load of crock, & there’s no way honest people are going to see any of this ‘relief’. Maybe those dying soon who complied with the shot pressure: most of whom the State already owns, getting whatever’s left at their death. It’s just another vote-buying lie, & probably the establishment of a crony craft pay system State charitable NGO.
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Meanwhile my husband gets asked if he wants a ‘compliant’ drivers license again when he renews his, needing to show proof of identity. What else is there? And, why, since he’s 78 years old & lived in this state almost 30 years now: surely you have my name, social security number & all the photo id’s obtained during that time period in your system. All just a big game….but they don’t even know the depth of truth in their words when they brag how ‘it’s all gonna burn’.
Periodically in life, one is most assuredly going to find a period of time when they have some debt (outside of mortgage and vehicle).
I don’t care if it takes you many years to pay it off – someone, somewhere, extended to you a product or service when you were in a point of need. They trusted you to pay it back. Anything short of that is a form of theft.
When someone walks away from their obligation because they are uncomfortable with it hanging over their head, it gets spread out to those who are responsible and pay their financial obligations.
In the event someone of need expresses that beforehand (say, to a hospital) and that hospital comps them, they do so knowingly and willingly. Hospitals (for instance) portion for such in their budgets. It is vehemently wrong to solicit a service, provider, or merchant, knowing you are not then, or soon thereafter, in a position to pay.
Nothing in this life is free. Someone has to pay.
Salvation isn’t free. Jesus Christ paid dearly for you to have it.