On January 12, the Somerville City Council unanimously passed a resolution sponsored by At-Large Councilors Willie Burnley Jr and Charlotte Kelly to use American Rescue Plan Act (ARPA) funds to cancel millions of dollars of residential medical debt.

Across the country, cities and counties have made headlines for efforts to wipe out medical debt. Toledo, Pittsburgh, New Orleans, and Cook County, Illinois have all partnered with the non-profit RIP Medical Debt (RIP) to cancel medical debt for residents making less than 400 percent of the federal poverty rate or those for whom debt is 5% or more of their annual income.

“All medical debt is a policy failure, a failure which endangers the health of us all and should be eliminated,” said Burnley. “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.”

“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,” shared RIP president and CEO Allison Sesso. “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.”

“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,” said Kelly. “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”

The deadline for non-profits to apply for ARPA funding ends on February 3 with all proposals requiring approval from Mayor Katjana Ballantyne. The Public Health and Public Safety Committee of the City Council is set to hear more about medical debt cancellation on Monday February 13. If approved by the Ballantyne Administration, Somerville will be the first city in Massachusetts to wipe out millions of dollars in medical debt from residents.

 

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