Starting this Friday, September 6, Mayor Muriel Bowser’s administration will be canceling the medical debts of select low-income DC residents. Over 62,500 Washingtonians will be notified that their outstanding medical debt, totaling nearly $42 million, has been wiped out.
The program’s eligibility criteria are based on the resident’s income being less than four times the federal poverty level or the medical debt exceeding 5% of their annual household income. Notably, 80% of the recipients live in zip codes that are predominantly Black or Latino, underscoring the program’s focus on addressing disparities in access to healthcare and financial stability.
The debt relief program, funded by an anticipated year-end surplus from the Fiscal Year 2023 budget, represents a creative and impactful way for the District government to support its most vulnerable citizens. Mayor Bowser emphasizes the far-reaching benefits of this endeavor, stating, “By releasing D.C. residents from the burden of medical debt, we’re making sure people have a fair shot.”
The debt cancellation process is being facilitated through a partnership with the nonprofit Undue Medical Debt, which will send personalized letters to each eligible resident detailing the amount of debt being erased and the dates of service. This streamlined approach ensures that beneficiaries do not need to take any action, as the debt will be automatically removed from their credit reports without any tax implications.
To further support the affected individuals, the local nonprofit Tzedek DC is providing legal assistance to help navigate the medical debt cancellation process.
Mayor Bowser’s office emphasizes the transformative impact of this initiative, acknowledging that the burden of medical debt can be a significant obstacle to individuals’ pursuit of education, homeownership, and overall health and well-being.
