NYC Mayor to Relieve Over $2 Billion in Medical Debt for Hundreds of Thousands

[MAZDA3]

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@MarkintheHV wrote:

Between the student loan forgiveness and now the medical forgiveness, they seem to think that the taxpayer is just an ATM.  To some out there being responsible means you get screwed.  Tax payers are just about tapped out.

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As far as the student loan forgiveness goes, a couple possible avenues were approved by congress decades ago. One of those included loans held by the Dept. Of Ed which reached 20 years of payments on undergrad, and 25 years of payments on graduate loans. Shark-like servicers weren't keeping accurate counts. FFELP loans could be consolidated into a direct Dept. Of Ed loan, to become eligible for forgiveness. In fact, FFELP loans crippled GEN-X with loans that seemed to grow rather than shrink. The vast majority of the first 800,000 forgiven were GEN-X paying for the last 20 to 30 years. I'm one of them. Paid 23 years, three more than I was supposed to because Sallie Mae, then Navient couldn't figure out up from down. I can actually realistically see a retirement in my future.

As far as medical bills go. Bad things happen to even the most responsible people. I'd rather see medical bill forgiveness rather than bankruptcy after going through cancer treatment. What more do you want them to endure? Complete loss of everything they've got?

[TrapLine]

When did local elected or appointed officials acquire such power?

As a left over from the political world I seriously doubt the authority exists?

[pizzadude]

Intresting study published on the benefits ( or lack thereof ) related to this medical debt relief.   NYT is usually paywalled but this article appears open for now.  

Since 2014, R.I.P. Medical Debt estimates that it has eliminated more than $11 billion of debt with the help of major donations from philanthropists and even city governments. In January, New York City’s mayor, Eric Adams, announced plans to give the organization $18 million.

But a study  published by a group of economists on Monday calls into question the premise of the high-profile charity. After following 213,000 people who were in debt and randomly selecting some to work with the nonprofit group, the researchers found that debt relief did not improve the mental health or the credit scores of debtors, on average. And those whose bills had been paid were just as likely to forgo medical care as those whose bills were left unpaid.

https://www.nytimes.com/2024/04/08/science/rip-medical-debt.html

[FicoMike0]

The math is a little suspect.  Paying off 2 billion with 18 million is a little less than 1 cent on the dollar. Good leverage. Paying off 500,000 debts with $18 million is $36 a head.  I checked myfico, my current debt is $808. With that discount, I could settle my debt for $7 and change.