Getting to the bottom of Toledo’s plan to eliminate millions in medical debt
There are still some kinks that need to be ironed out before the plan is put to the test.
TOLEDO, Ohio — It’s a plan that has garnered national attention: Toledo City Council, in a 7–5 vote, passed a proposal to eliminate up to millions of dollars in medical debt. But how would the plan work? I spoke with Councilwoman Michele Grim, who spearheaded the proposal.
“I think this is gonna help a lot of people.”
According to Councilwoman Michele Grim (D), under this plan, the City of Toledo is partnering with RIP Medical Debt. The nonprofit works with hospital systems across the country to eliminate people’s medical debt — pennies on the dollar.
“They take the bad debt from the hospital systems or other healthcare groups, purchase that debt in bundles, and then anybody who qualifies, which is up to 400% of the poverty level, they would receive a letter saying their debt’s been canceled,” Grim explained.
This plan is being funded by $800,000 of American Rescue Plan Act dollars, which is less than 1% of the total amount of money allocated to the city of Toledo ($180.9 million). This means that residents will not see a tax increase.
And just recently, the Lucas County Commissioners announced their plan to throw an additional $800,000 behind Toledo’s plan. However, Grim says the details of how that’ll work still need to be ironed out.
“I think we still need to kind of work that out if it’s gonna be more of like a direct partnership or something separately. But you know, again, I’m thrilled that they’re on board and they were able to match that $800,000,” Grim said.
With so much money being allocated toward this plan, is there a guarantee that our local hospital systems are willing to partner with RIP Medical Debt?
“RIP Medical Debt has been in contact with a few of our hospital systems. There isn’t much I can say around that, because they do have to sign NDAs and things like that, but they have been in contact with a couple of the hospital systems,” she said.
And this week, Councilwoman Grim was elected to serve as state representative for Ohio’s 43rd House District. Her last day on council is December 31st, so shortly after, members will have to appoint someone to fill her at-large seat.
