Detroit-area county will use federal money to erase medical debts

PONTIAC, Mich. (AP) — A Detroit-area county said it will use $2 million in federal aid to erase the medical debts of thousands of residents.

Oakland County Executive Dave Coulter believes as much as $200 million of debt could be wiped away if health care providers agree to take less money to get some delinquent bills off the books.

The county will be working with RIP Medical Debt, a national nonprofit group, that uses donations to purchase medical debts belonging to people who can’t afford them.

Coulter said he wants the county’s share of federal money “to be transformational.” The money comes from a program intended to stimulate the economy and improve public health after the worst of the COVID-19 pandemic.

Residents cannot apply for the program but will be notified if all or some of their debt has been cleared, the Detroit Free Press reported.

RIP Medical Debt will work with area hospitals to determine who fits certain financial criteria.

Kyra Taylor, 34, who lives nearby in Wayne County, said she benefited about three years ago when her debt was eliminated. She’s been a diabetic since a child and needed two transplants.

Erasing debt gave “me my life back,” she said.

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This story has been corrected to show Kyra Taylor is 34.