Mayor Carter Announces Nearly $40 Million of Medical Debt Abolished for 32,000 St. Paul Residents
Mayor Carter announced that the City of St. Paul and Undue Medical Debt abolished nearly $40 million of medical debt for 32,000 St. Paul residents. It is the first relief package of Mayor Carter’s Medical Debt Reset Initiative.
During his 2024 Budget Address, Mayor Carter committed $1.1 million in American Rescue Plan dollars to erase an estimated $110 million in medical debt for qualifying St. Paul residents. In this first round, the average amount of debt forgiven was $268 while the largest debt forgiven was $104,972.
Recent data reveals that national medical debt has reached about $220 billion, impacting over 100 million Americans. Among the insured, roughly 54% of adults carry medical debt, while 41% of the uninsured face even greater challenges. This complex burden often forces individuals to delay necessary care to prioritize basic needs like food and housing. However, postponing care leads to unresolved health issues, exacerbates anxiety and depression and escalates larger financial problems.
Individuals who qualify for medical debt abolishment through the city’s initiative must currently live in St. Paul, have incomes up to 400% of the current Federal Poverty Guidelines, or have medical debt that is 5% or more than their annual income. The initiative can only erase qualifying debts that are acquired from participating providers like hospitals. Those eligible as part of the first round of abolishment will be notified soon by mail that some or all of their debts have been relieved. Recipients do not need to take any action. The city will announce as more debt is relieved and recipients receive letters in the mail.
