Some New Orleans patients to see more than $59M in medical debt erased
NEW ORLEANS (WGNO) — An agreement between the city, Ochsner Health and a national nonprofit means some low-income patients in New Orleans will have more than $59 million in medical debt erased.
It was announced Monday, Aug. 19 that the City of New Orleans, the New Orleans City Council and Ochsner Health have partnered with the national nonprofit Undue Medical Debt to erase past medical debt for nearly 66,000 qualifying patients.
“Helping residents burdened by medical debt takes enormous collaboration and we’re extremely grateful to all our partners who have made this possible. We hope this program provides financial and emotional relief to recipients and encourages them to continue engaging with the healthcare system,” said Undue Medical Debt CEO and President Allison Sesso.
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City officials said impacted residents do not need to apply and there is no application process.
Qualifying residents will receive a branded letter from Undue Medical Debt disclosing which debts have been eliminated. The effort is being done through the help of hospital systems and providers across the country.
Leaders with the nonprofit report that qualifying patients have medical debt equaling 5% more than their annual income or earn below poverty level income.
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The current federal poverty level for a family of four is under $31,200.
City officials report that New Orleans entered into the agreement in May 2023 and provided the nonprofit with $1.3 million in American Rescue Plan Act funds.
“Medical debt is common in our state, especially following the COVID-19 pandemic, which we know had a disproportionately hard effect on New Orleans. My administration continues to be intentional about partnering with health providers to provide this medical debt elimination so we can improve people’s lives. Working stronger together, Ochsner is a strong community partner, and we commend them for collaborating with us on this initiative,” said Mayor LaToya Cantrell.
In a report from the Consumer Financial Protection Bureau, it was discovered that about 22% of Louisiana’s population has medical debt especially those impacted by COVID-19.
“Historically, medical debt is directly tied to poor health outcomes, as individuals often do not seek further care if they are saddled with bills they can’t pay,” said Dr. Jennifer Avegno, Director of the New Orleans Health Department.
For more information on the initiative, visit the Undue Medical Debt website.
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