CLEVELAND, Ohio – Several Cleveland City Council members have introduced legislation that aims to use COVID-19 stimulus money to forgive medical debt for city residents.
The bill would provide $1.9 million of American Rescue Plan Act dollars to RIP Medical Debt, a New York-based nonprofit that buys medical debt at a steeply discounted rate and uses donations to pay off people’s debt, according to its website.
The legislation is off to a strong start, being sponsored by a near-majority of councilmembers: Council President Blaine Griffin and members Kris Harsh, Kevin Conwell, Charles Slife, Richard Starr, Rebecca Maurer and Jasmin Santana. Cleveland City Council has 17 total members.
The legislation, introduced Monday, aims to provide relief for 48,800 city residents.
RIP Medical Debt promises that every dollar in donated money helps forgive $100 in medical debt, according to its website.
The legislation does not establish who would be eligible for medical debt relief, but RIP Medical Debt’s website says it typically serves people who make less than four times the federal poverty rate and whose debt makes up 5% or more of their annual income, according to its website.
RIP Medical Debt has grown substantially since it began in 2014, according to its online tax forms. In 2016, the group received roughly $260,000 in gifts, grants and contributions. By 2020, the most recent year available, that number rose to $66.1 million.
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