The Big Buyback
Arizona takes steps to erase $2 billion in medical debt
For $30 million and at no cost to Arizona taxpayers, Gov. Katie Hobbs will cancel the medical debt of around 1 million Arizonans.
Hobbs is using COVID relief funds to purchase the debt. The $30 million is expected to purchase $2 billion worth of medical debt in collections.
The "Affordable Arizona: Tackling Medical Debt for Working Families" programĀ will use up to $30 million in American Rescue Plan Act (ARPA) funds to buy back Arizonans' medical debt, Gov. Hobbs said. Residents who make less than 400% of the federal poverty level and those whose debt equals 5% or more of their annual income are eligible for the program.
The state is partnering with the Long Island-based charity, RIP Medical Debt.
The Arizona plan is similar to an effort in Toledo, Ohio that used COVID funds to cancel the medical debt of some 40,000 residents.
In a recent piece on debt in Tennessee, I noted that the Volunteer State has a significant surplus and could use some of those funds to cancel medical debt.
Tennessee has billions of dollars in surplus funds in various accounts. The state could set up a fund to buy medical debt to provide immediate relief. Doing so would provide stability to families and likely boost local economies. Expanding Medicaid would help ensure medical debt doesnāt get to this level again.
Instead, it looks like Tennessee policymakers are poised to pass a $1.6 billion tax giveaway to corporations.