SOMERVILLE, MA — Somerville City Councilor Willie Burnley Jr. is calling on Mayor Katjana Ballantyne to approve a proposal that would see American Rescue Plan Act (ARPA) funds used to cancel all medical debt for thousands of residents who fall below certain poverty thresholds.
The proposal, put together by Burnley and fellow At-Large Councilor Charlotte Kelly, was passed unanimously by the city council on Jan. 12, and Burnley has issued a resolution calling on the mayor to sign off on the plan.
“All medical debt is a policy failure, a failure which endangers the health of us all and should be eliminated,” Burnley said. “Conversations I’ve had with multiple regional hospitals demonstrate that government can ensure that no one has to endure the indignity of sacrificing their basic human right to healthcare as long as we have the political will to fight for a future for all.”
The council is working on the proposal with a nonprofit called RIP Medical Debt (RIP), which has partnered with municipalities like Toledo, Ohio, Pittsburgh, New Orleans and Cook County, Illinois on similar proposals. Somerville would be the first city in Massachusetts to wipe out millions of dollars in medical debt from residents.
“Medical debt has reached a crisis point for millions of Americans, causing depressed credit scores, fueling bankruptcies and decreasing the likelihood someone seeks out the care they need,” RIP president and CEO Allison Sesso said. “It’s exciting to see yet another local government interested in our model and I am hopeful we’ll be able to engage local healthcare providers in the process.”
Burnley said RIP has indicated that $200,000 of ARPA funding from the City of Somerville would be needed to cancel medical debt for residents making up to 400 percent of the federal poverty rate and for those for whom debt is 5 percent or more of their annual income.
According to a release put out by Burnley, the deadline for nonprofits like RIP to apply for ARPA funding is Feb. 3, with all local proposals requiring approval by Ballantyne.
The Public Health and Public Safety Committee of the Somerville City Council is set to hear more about the medical debt cancellation at its Feb. 13 meeting.
“Somerville has the opportunity to transform thousands of residents’ lives with very few resources, and this is an incredible opportunity to center equity and economic justice in how we spend our remaining ARPA funds,” Kelly said. “We can lead boldly around the issue of healthcare debt, support our residents who continue to struggle due to exasperated economic and medical impacts of COVID-19, and strengthen our relationship with medical institutions that serve as the primary point of medical care for our residents.”
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