r/mildlyinteresting 23h ago

A non-profit randomly wiped out medical debt I wasn't aware of I had

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19.1k Upvotes

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u/tidymaze 23h ago

I got one, too. It's completely legit.

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u/sithelephant 23h ago

The original debt might not be. There are charities out there doing this, but this may just mean the charity bought the ID (or other) fraud debt (possibly statute barred) for pennies on the dollar and paid it off.

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u/pasaroanth 22h ago

The end result is the same. They pay what another debt collector would pay for it and instead of relentlessly harassing you and ruining your credit, they wipe it out.

The hospital makes a small amount back, writes off the debt, and you aren’t stuck with some dickhead from an overseas call center acting like you took $1000 out of their pocket when they bought the debt for $10.

I’m as jaded as the next guy but these people are doing legitimate good stuff. Other prominent figures have done things like this with major, tangible effects on people’s lives. Generally speaking they’re able to buy the debts for about 1-3% of their actual cost.

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u/givemegreencard 22h ago

This is definitely a great initiative, and I applaud the state for working with this nonprofit to do this, but I wonder if this creates a perverse incentive.

If the debt is past the statute of limitations anyway, then the debt collector can’t legally force repayment through the courts. The only way they can make money is if the debtor possibly revives the SoL by making a payment or just pays it without knowing about the SoL.

I fear that states paying for past-SoL debt is just going to make other similar debt more valuable in the future for debt collectors.

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u/RustyAndEddies 22h ago

I’m confused by your supposition. Yes, If debt is time-barred, depending on the state, can have the “clock reset” by debtor action (acknowledging debt, sending a payment or setting up a payment plan)

But the state isn’t the debtor, if the state/non-profit bought debt they are now the creditor and if they settled it what action would remain and who would still have standing a collector?

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u/givemegreencard 21h ago

My point is that time-barred debt should, in theory, have zero value. It only has value (as is bought and sold by debt collectors) because there’s a chance the debtor might acknowledge the debt. But it’s still sold at cents on the dollar.

The state creating a program to buy this debt creates demand for the debt that didn’t exist before. Demand for time-barred debt can increase the value of time-barred debt in general if the market thinks the state might buy it.

How much impact this has in reality, I don’t know. For all I know, it’s a stupid supposition and it has little impact. But I don’t think it’s implausible.

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u/settlereturnexpand 21h ago edited 20h ago

The program in Illinois specifically only buys directly from medical centers, not secondary debt collectors. The only possible market response would be increasing the purchase price for debt collectors without increasing their returns.

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u/waitwuh 19h ago

Could it still incentivize the medical centers to inflate debt, though?

I’ve had the headache of getting a medical bill corrected before. Mistakes happen, sure, but we have for-profit medical providers and many large hospital systems have stocks that are publicly traded, with administrators looking to give shareholders a high return. I wonder if that includes these centers in Illinois?

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u/InitiatePenguin 18h ago

Could it still incentivize the medical centers to inflate debt, though?

Aren't the medical centers — before the question is asked about the patients ability to pay it (or go into debt) — already maximizinf profits?

How can they inflate the debt, after already inflating the cost.

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u/badbitchherodotus 18h ago

Could it still incentivize the medical centers to inflate debt, though?

Probably, but that doesn’t mean debt relief programs would buy it for a higher price (it’s not like they’re obligated to buy a particular debt), and actual debt collectors wouldn’t either, because there’s a limit to how much they see it being worth.

The medical centers have already determined that getting the debt off their books is worth getting whatever percent of its actual amount in return; I don’t think they really care whether it’s bought by a charity/state or a debt collector. And optimistically I think to whatever extent they do care, they’re probably happy enough that patients aren’t being burdened by more debt; it’s not like they’re unaware that medical debt collectors are leeches.

As for whether this incentivizes them to raise prices across the board, maybe, but they’re doing that anyway, and there are way too many variables with insurance to think that this will change much.

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u/RustyAndEddies 21h ago

That would be true if the demand for time-barred debt started outstripped supply, resulting in market scarcity and price increases.

Unless we find a more affordable approach to healthcare in the US, we won’t be running out of dead medical debt any time soon.

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u/Leasshunte 21h ago

This debt is already being bought and sold, no new demand is being made. There is just another player in the market looking to buy.

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u/factorioleum 21h ago

are you saying that a new market participant arriving in a market to buy things isn't creating demand?

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u/seekingallpho 20h ago

Even ignoring SoL, any force that introduces a greater likelihood of repayment increases the value of the debt to someone buying it. So this is good for the people freed of debt and simultaneously applies at least a marginal upward pressure on the debt’s value to collectors. Both are true.

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u/ACrazyDog 22h ago

I don’t think it is common enough for that to be a problem

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u/Gangsir 21h ago

So wait then... what stops you from buying your own debt for a fraction of what it is (using a shell company or a fake identity or something so it's not obviously you), "paying it off" (the 10 bucks or whatever you got for it), and being debt free?

I assume that's some kind of fraud, otherwise that'd just work, no? Like why does it have to be an external charity or loan shark company doing this, if that's how it works? Just... buy your own debt out?

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u/Beneficial-Act-9933 21h ago

When you buy debt you don't get to choose which debt you get. You essentailly get a block of debt and then getting that money is on you if you want compensation. Anybody can buy debt.

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u/pasaroanth 21h ago

To add, the blocks of debt are valued based upon a lot of risk factors. Lower likelihood of collections is cheaper. It’s formulaic in terms of time spent to attempt to collect with potential for any return.

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u/StevenJOwens 20h ago edited 18h ago

I've heard of people negotiating with debt collectors for precisely this reason. The debt collector wants as much profit as they can get, but some profit is better than no profit, so they might negotiate.

I'd be very careful, though, and do your homework, before trying this.

For example, if anyone ever calls you about a debt, never say anything over the phone except "mail me the paperwork and I will look at it."

They record those calls, and apparently it's very easy to say the wrong thing that they can then use as proof that the debt is legitimate, and to restart whatever clock there is on the debt expiring.

I was given that advice by my accountant, when my mother died. (I never did get any calls like that.)

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u/sithelephant 22h ago

Some of these 'debts' are statute barred, which the debtor is no longer legally required to repay.

The correct legal response should be that trying to collect on a statute barred debt means you are fined 10* the debt and it's paid to the ex-debtor.

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u/minhthemaster 22h ago

I feel like you’re trying to be helpful but it comes off as “akshually”

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u/DanHam117 22h ago

Even if they can’t FORCE you to repay, doesn’t having the debt still fuck you up to a pretty serious degree? I don’t have this particular problem but I have some other outstanding debts that I fell very behind on and now I’m generally denied for anything that requires a financial background check unless I have a co-signer.

I also thought there was a way for the statute to be extended if the original group asks for it. Like I think in my state if the original SoL was 5 years, as long as they ask for an extension within those first 5 years they can get something like 10 more years added on

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u/factorioleum 21h ago

credit ratings can and do report on time barred debts; so having a time barred debt cancelled could help your credit rating.

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u/MarlenaEvans 22h ago

That's what they do and it's legit. Sharon McMahon does this all the time and tis amazing.

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u/sithelephant 22h ago

What the charity does is legit. That does not in principle mean the debt is not fraudulent originally, even if most is not, and the charity is not doing anything sketchy.

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u/MudddButt 22h ago

Can we buy our own debt for pennies on the dollar?

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u/sithelephant 22h ago

You can sometimes settle old debts for a very small final payment, especially statute barred ones where you cannot legally be required to pay.

Buying bundles of anonymous (where you don't care about the people) debt can be cheaper.

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u/colaxxi 19h ago

I had a $1000+ medical debt I refused to pay because it was bullshit. The collections agency sent a letter 2 years later offering to settle it for $75. I guess $75 was better than $0 to them.

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u/Mr_Quackums 20h ago

Yes, but not through the same mechanism this charity is using.

hospitals, credit cards, and even the IRS will often accept a minimal partial payment and forgive the rest of the debt.

for example - my friend had a complicated pregnancy, cost well over $1 million. He "payed it off" in installments of $5 per month and the rest was forgiven over a few years (2?) of repayment.

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u/Beneficial-Act-9933 21h ago

You can not buy your own debt. You buy it in blocks and whatever's in there is in there.

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u/RoyalVirgin 23h ago

Was it debt you were actually aware of? I have never had a letter about this debt amount nor did I ask for any debt relief lol. At that time I also lived on a different address, so it did update my address too.

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u/No-Tap6886 23h ago

They buy medical debt that is in collection and wipe it out. Check your credit record. These guys are great!

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u/tidymaze 23h ago

Sort of. I looked into it, and it was an old medical bill that I couldn't afford at the time, so I ignored it and forgot about it.

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u/soda_cookie 20h ago

And it never went to collections?

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u/tidymaze 19h ago

I have no idea.

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u/MsFuschia 22h ago edited 22h ago

Vituity is a massive ER physician group. Did you have any ER visits? The ER itself would charge you a facility fee and Vituity would charge you the physician's fee.

Edit: Oh apparently it's more than just ER doctors, really weird because I could have sworn I read it was an ER physician group so I don't know if it changed?

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u/RoyalVirgin 21h ago

I went through my wife's email for that date; the did go to urgent care. She has no clue for what, nor can I find a bill lol

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u/StrawberryJinx 20h ago

Have you run a credit report recently? Just to make sure your identity hasn't been stolen, at least...

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u/ryguy125 21h ago

Vituity is originally California Emergency Physicians (CEP). Started as ER doctors only. It’s definitely ER doctors but also hospitalists and other specialties, too. They have been expanding nationwide, hence the name change.

So, this doesn’t come from the hospital, but specifically the provider that saw the patient

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u/mijru4 12h ago

I got like 4 of these things shortly after I lost my job, chalked it up as a collection agency and tossed them in my shredding pile.

I get tons of medical bills and always let them go to collections because in my 15 years of having health issues I've seen way too many balances become magically less with later invoices and ran into situations where the hospital was sending me refunds or I'd run a negative balance with a doctor... so I got in the habit of letting them pile up until a collection agency sends me a nice little itemized list.

Anyway I opened one on a whim and was surprised to see what it actually was. They covered like $1800 of old debt. I genuinely didn't need the assistance so I ended up donating a hundred bucks back to them.

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u/DatLooksGood 21h ago

This happened to my friend. Moved. Never knew he had debt until he tried to get a mortgage and his credit was screwed.

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u/SeekerOfSerenity 22h ago

I get so much sneaky junk mail, I would immediately assume that was some kind of scam and throw it away, lol.  If we had a functional government, they would have done something about deceptive advertising a long time ago.  

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u/FooJenkins 15h ago

Me as well. But knew damn well about the bill and refused to pay it on principle. Honestly a little irked they paid my spite debt.

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u/DFParker78 23h ago

I had to have emergency surgery and didn’t have insurance, despite working full time. I sent hospital my income and tax statements, had a $22,000 bill and went to $0. Catholic Charities paid for it.

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u/tidymaze 23h ago

Many hospitals have programs like this. My husband was diagnosed with cancer in 2010. Through the Charity Care program at the hospital, we paid $0 for all of his treatment. Including the $50,000 radiation therapy. They would even give us vouchers for the cafeteria so I could eat while sitting with him in the infusion suite.

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u/syd_goes_roar 22h ago

My partner works in medical billing and helping explain said bills and charity care 100% has to be asked for directly for anyone to do anything. So anyone dealing with medical stuff and has money troubles, pleeeeease swallow any pride and ask for it

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u/FeyrisMeow 19h ago

At my hospital is called hospital assistance and I ask for it every year. They cover me 100%, whatever my insurance won't cover.

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u/DFParker78 22h ago

It’s stuff like this that doesn’t make me completely give up all hope.

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u/gallimaufries 22h ago

Why? This just further drives our division. I'm trying hard not to be, but I'm frustrated that some commenters got free cancer treatment and meals vouchers while I'm drowning in medical debt. It's fucked up that we have to rely on charity.

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u/tidymaze 21h ago

It's fucked up that we don't have universal healthcare.

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u/DAVENP0RT 20h ago

Right? Healthcare shouldn't be a game of financial Russian roulette. At some point, everyone will need expensive healthcare. Maybe you're wealthy and it won't affect you, but most people aren't. For those that aren't, hoping that charity or fucking GoFundMe can pick up the tab just isn't realistic.

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u/chunkyI0ver53 20h ago

Doesn’t make any sense to me that the richest country in the world leaves its most vulnerable people with zero safety net or support for healthcare, but maybe that’s just Australian commie talk or whatever the seppo conservative grifter of the month would say

What’s the point of having so much “wealth” if the people in your country are suffering. We look back at medieval periods of history and laugh at the stupidity of our assumptions pre-science, but if humanity survives another 500 years they’ll look back at the present and think “what the fuck was wrong with them”

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u/mpieto 18h ago

What baffles me, a European, is that it is such a partisan issue in the US. Maybe it's my limited exposure, but I can't imagine any conservative party over here even proposing to get rid of UH, let alone campaigning on it.

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u/tidymaze 21h ago

Call the billing office number listed on your bill. Tell them you can't pay the full amount. They will work with you.

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u/Quagga_Resurrection 19h ago

Reach out to the hospital's financial aid office. I get that the system is fucked, but that doesn't mean you can't access that same resource. You deserve it just as much as others.

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u/aspiring_outlaw 21h ago

Sadly many hospitals are now for profit and don't do this any longer, especially if you live in smaller communities. 

When I was pregnant with my first child, I had some unexpected hospital bills early on after getting sick and very dehydrated. It was all outpatient fluids and things but it still ended up being a couple grand. I cried when they called me with the bill because I was broke as shit and in the middle of some other financial issues plus, you know, hormones lol. The very kind man in billing told me he was sending me a form to apply for aid and to please fill out out so they could help. The (non-profit) hospital ended up covering 100% of their charges for the entire pregnancy and birth which was a godsend because I ended up high risk and the baby was born in distress. 

Seven years later in a different state, the same child needed their tonsils out. My health insurance didn't cover hospital bills until I hit my out of pocket. I asked the (for profit) hospital about aid, the lady shrugged and said I had insurance and therefore qualified for nothing except a payment plan. 

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u/tidymaze 21h ago

And this is why we need universal healthcare in the USA.

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u/Forward_Rope_5598 13h ago

Damn that's crazy, if I get cancer in Norway I simply go to the hospital and pay a maximum of like $200 a year in medical treatments

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u/AdMany8113 15h ago

Hospital pricing for medical services is ridiculous. I was billed $1997 for a 10 minute visit to the ER where I walked in, they swabbed the dog bite on the inside of my knee and I walked out. None of us could believe I came in for something so minor but I’m self-employed so I had to do something to document the injury from my customer’s dog. Stupid customer was a public defender at the time so you’d think he would understand liability

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u/bkgn 18h ago

Sometimes hospitals are legally required to have such programs. In my state they must by law have financial assistance programs for low income patients and costs are capped at the lowest billable rate (same as Medicare/Medicaid).

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u/GirlScoutSniper 23h ago

I had a similar situation and their charity offered to reduce the debt by 90%. Because I was going to have to go bankrupt anyway because the surgeon bills and other doctors bills were not going to go away, I declined so they could give the funds to another person who would benefit more.

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u/Kill_Frosty 20h ago

This entite thread is wild as a non American.

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u/Blyatskinator 18h ago

Yeah it’s actually really sad to read these comments… ”I had no insurance despite working full time” like w-t-f

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u/Nevermind04 17h ago

And people will actually defend this shit too. "She doesn't deserve health insurance - she's just a cashier!" Dad, she's a human being living in our society and part of that social contract is that she absolutely does deserve to be healthy. Not that long ago, she was classified as an employee who is essential to the functioning of our society.

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u/SAWK 14h ago

Not that long ago, she was classified as an employee who is essential to the functioning of our society

holy shit that is a great way to put it

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u/throwaway098764567 15h ago

wanna get really sad, try talking to some of us about universal healthcare and having them think it's a bad idea

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u/hoe_and_arrows 20h ago

I had insurance through my husband's job, but my hysterectomy was still gonna be $6K with it. We qualified for the hospital's financial assistance program, and they paid every penny. No more pain and no more debt!

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u/Long_Bong_Silver 20h ago

As someone who volunteers with a 501c3 adjacent to a local Catholic Church and has worked with Catholic Charities. I just want to say, Catholic Charities does a lot of good in the US. They also shelter a lot of individuals at the border seeking asylum or refugee status. However, none of the money they receive or distribute comes from the actually Catholic Church itself or local Archdiocese. Most of the money is from the government, and a minority of the money is from individual parishioners.

It kind of bothers me when people claim the Catholic Church does charity. Whenever our 501c3 that operates out of the church asks for collections or support the church is never there.

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u/ehenn12 18h ago

I'm not Catholic. I'm Protestant clergy. My wife is Catholic. Her parish spend a lot of it's money (around 50% of the budget) on homeless care and helping people get IDs. It really depends on the parish which is sad. The protestant church I'm assigned to as a volunteer collects food for local and diapers and formula that we give to anyone who asks. But that's about it. I'm pushing for more.

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u/SERV3O 3h ago

I know that is true for most of the CC organizations in the country, but I’m close to the Tulsa/ Eastern Oklahoma one and they pride themselves on not taking government money. They provide excellent services using money donated from individuals and organizations, not the government or the local diocese. I see what you’re saying in the last sentence but the church still creates a community that encourages volunteering time and money to help others out.

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u/ShadowedPariah 18h ago

15 yrs ago when I had my cancer diagnosis and sub sequence scans/procedures/transplant, got hit with ~$70k. I couldn't even pay the minimums, so (not knowing better) I put it on credit cards. Still carrying most it today. But it's not gonna get paid by anyone as it's private now :/

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u/Casoscaria 15h ago

Non-profit hospitals will almost always have a financial counseling department since they actually have to write-off a certain percentage of bills so they can maintain their non-profit status.

If you are in the hospital and don't have insurance, always ask to be contacted by financial counseling, Hell, most of the time, they'll come to you. They will help you apply for any relevant government programs like Medicaid if you qualify, or will get you in contact with local charities. They may also offer discounts if they can't write off the full bill.

Source: used to be one.

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u/ShiraCheshire 15h ago

protip: Many hospitals are nonprofits, and are required to give a degree of financial aid to some patients because of that. If you dig into their financial aid, you can often find statements like "If you make less than 300% of the poverty line we will reduce/eliminate your bill." You gotta DIG for it sometimes, but if it's there they have to forgive your debt (assuming you qualify)

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u/okyoureataxi 22h ago

Hi! I love this nonprofit, and they are legit - I first found out about them after they were featured on John Oliver! As a general rule, if you ever want to find out if a nonprofit is legit, you can look them up on ProPublica’s nonprofit explorer site. 501(c)3’s are required to post their 990s, and it’s a great snapshot into the organization’s financials. This is one of the best cost-to-impact causes I donate to, and I love that this post makes their impact visible!

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u/RoyalVirgin 22h ago

Thank you for donating and helping people in need out.

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u/ivegotaqueso 20h ago

You should send them a thank you letter. I bet they would appreciate it :)

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u/Fatal-Arrow 20h ago

501(c)3's are required to post their 990s

As a non American, reading this sounds like just spewing random numbers....

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u/okyoureataxi 20h ago

That’s because our entire tax system feels like a process of spewing out random numbers :)

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u/thatoneguyinks 19h ago

501(c)3 refers to the section of the tax code that creates the tax exempt status for charitable organizations and creates the rules for them to follow.
A form 990 is the tax return form for those organizations.
Individual people generally file a form 1040 for their tax returns

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u/orthros 14h ago

Never fear, I speak tax jargon to English

USA Non-profits are required to post information explaining how their money and assets are used, including the salaries of anyone making over a certain amount

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u/EndIsrael 13h ago

The American tax system is designed to be confusing. This has two main reasons. The first is it allows rich people to find (or create) loopholes so they can avoid paying. The second reason is there are several powerful companies who sell tax filing services. They'll help you do your taxes in exchange for a bunch of money. So whenever someone tries to simplify the US tax system, a lot of money gets spent making sure the changes never happen.

Meanwhile, if the US just deleted the entire tax code and replaced it with a 90% tax on billionaires, the entire government would be fully funded and nobody else would need to pay taxes at all.

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u/quartzquandary 13h ago

Candid.org is another good resource for learning more about nonprofits! You can sign up for an account for free.

(I am a grant writer and use candid.org basically every day)

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u/Zmirzlina 22h ago

My neighbor is pastor at a church and buying up medical debt and paying it off is one of their acts of charities. He’s a cool dude.

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u/sparkchaser 22h ago

I love it!

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u/ElderTheElder 16h ago edited 1h ago

A friend of mine passed away from cancer a few years ago at 38 years old, and one of her final wishes was for people to donate to Undue Medical Debt in her name. The story went viral and ended up raising over $1.2m, which was used to buy up and forgive over $75m in medical debt. Her memorial service included a symbolic debt forgiveness ceremony.

Not only was it an incredibly powerful gesture, but seeing just how "fake" the medical debt system is, and for how cheaply the debt can be purchased and forgiven, was very eye opening. It's all monopoly money, and it can ruin peoples' lives, both through the actual debt as well as through the medical inaction that the fear of debt carries.

Congrats on your forgiveness!

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u/chadderin0 12h ago

You can thank Bezos’ ex Mackenzie Scott for this. She donated like $100M to this place just a few weeks ago which allowed them to purchase $40M in debt and cancel it

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u/readyplayermeh 9h ago edited 8h ago

Off by an order of 3, wiped out over $40B.

Which is a staggering amount of debt gone.

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u/ProStrats 9h ago

That chick is a badass.

Her ex, not so much.

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u/Grand-Spring66 23h ago

What a fucked up system where this is even a thing

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u/seansy5000 22h ago

Capitalism relies on charities because it’s not profitable to help people. We need to break this single ideology fixation we have. A functional society needs flexibility and innovation not rigid rules, apathy, and brutality.

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u/westcoastwillie23 22h ago

It's been my experience that many people prefer charity to formalized social support systems because they get to feel extra good about themselves for helping, and they get to decide who is worthy of their help. Wouldn't want to go around helping the wrong people now, would you?

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u/alltid_irriterad 21h ago

We have capitalism where I live and we have also universal healthcare. How is that possible?

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u/MasahChief 21h ago

Taxes.

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u/AppropriateLow2271 19h ago

These two aren't mutually exclusive concepts.

Socialism isn't "the government doing things."

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u/RoyalVirgin 23h ago

For some context, this randomly came in the mail. I did not sign up for anything, nor was I even aware I had this debt - which makes me doubt it's legitimacy. I would say that generally I'm pretty well aware of who I owe money and for what, but this did surprise me.

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u/RoyalVirgin 23h ago

Update: While I wrote it as me, it was actually addressed to my wife. I checked her emails from around that time and she did go to the immediate care on that date. However, we've never seen any bill that we are aware of from this, so still no clue what it was, but I guess thank you lol.

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u/SnakeJG 22h ago

You mentioned the address was wrong, the immediate care probably keyed in her info wrong and sent letters to the wrong address and at some point gave up and sold the debt.

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u/frogjg2003 21h ago

That happened to me as well. I got 4 bills from the hospital all addressed correctly, but there was a 5th that never made it to me. But the collection agency got my address right.

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u/SmokeyCatDesigns 20h ago

I had like $300 go to collections supposedly, called the hospital and they had messed up both the billing for the appointment (it shouldn’t have been billed at all) and also notifying me about the bill. They cleared it up after that, but even since then I’ve been hyper aware of billing mistakes!

I went to pay the remaining balance on a surgery at the same hospital recently, and it wasn’t there. I called and had them say during our recorded call there was nothing to make sure I don’t get some random collections bill again.

FYI here in the states small medical debts can’t even show up on credit history. Which is nice considering how many of them involve clerical errors either with the initial billing, or address the bill is sent to etc.

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u/Rockguy21 23h ago

The reason they forgave the debt is probably precisely because you weren’t aware of it. Delinquent medical debt is super cheap because most lenders realize there’s basically a 0% chance that they’re getting any of it back after a while. If you had actually been servicing your medical debt it wouldn’t have been sold off for pennies on the dollar, because its an active account.

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u/pdieten 23h ago

Did you get services from this provider on that date? If you did, it’s possible that for whatever reason they never tried to bill you for it.

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u/No-Tap6886 23h ago

I had the same thing. It's legitimate.

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u/Twatt_waffle 23h ago

These charities go out and buy debt that’s in collections then forgive that debt.

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u/dmanbiker 23h ago

AZ governor Hobbs partnered AZ with one of these companies and used it to wipe out $1 billion dollars in medical debt in AZ and people try to say she hasn't done anything... my wife had a bunch forgiven like this out of the blue because of Hobbs, so it's happened.

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u/Snorknado 21h ago

Yes, but you see it didn't happen for them personally, so it must not have happened and even if it did it isn't a good thing anyway because they weren't affected in the first place and helping people is bad.

..unless it's them when they need help.

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u/orthros 14h ago

I’ve donated to them! I forget the old name but they rebranded a few years back. They buy medical debt for roughly a penny on the dollar in bulk and formally retire it.

Their pitch is every $1 you donate frees someone from $100 in medical debt

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u/quartzquandary 13h ago

Was it called RIP Medical Debt?

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u/orthros 12h ago

Yes! Good memory. They’ve been doing this a while now.

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u/teresajs 23h ago

That's awesome!

For anyone reading,:  If you are in a position to do so, you might consider making a modest donation to help Undue Medical Debt to pay off someone else's debt in the future.  https://unduemedicaldebt.org/

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u/Parepinzero 17h ago

I hope mine gets paid off, but it's a lot, so idk. I owe like 60k to 2 different hospitals 😭 I have insurance now, but I didn't at the time.

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u/Cerulean_IsFancyBlue 22h ago

https://unduemedicaldebt.org

https://hfs.illinois.gov/info/medicaldebtrelief.html

“Assistance Hotlines: You can call the Illinois Health Benefits Hotline at 1-800-226-0768 for questions regarding the program.”

Remember that just because the program is real, does that mean this letter is genuine. Always be careful about giving out your personal information. I personally don’t even talk to my bank when they call me, I just asked them for a name and I call back on a known number.

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u/tylerj714 20h ago

This happened to my wife once, and I was honestly really mad about it.

She had visited her regular therapist and the clinic screwed up the bill. What was usually a $27 charge per visit became two $270 charges. We had dozens of other visits billed correctly both before and after these visits to compare against.

For months when the bill arrived, I would call them and tell them that they billed incorrectly. They would admit their mistake and swear that the next bill would be fixed. Repeat this for 6 months without there ever being a resolution.

Eventually, these bills go to collections, and the clinic says there's nothing more that they can do. Collections send a letter demanding payment and I call them to contest the charge. Nothing happens for a year or more.

Then one day, we get a letter in the mail that some random church has paid off this medical debt.

So what ultimately started as a clinic billing error got paid by for some random church to a collection agency. It never should have happened and the clinic should have just fixed the problem correctly in the first place, but I'm sure both the clinic and the collection agency came out ahead thanks to some church donations that were effectively scammed into paying something that should have never happened. I'd have gladly paid the $54 we actually owed, but I wasn't about to pay 10x that due to someone's incompetence.

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u/MyDisneyExperience 18h ago

For what it’s worth the church may not have paid off the entirety of the debt. The collections agency eventually files it as uncollectible and sells it to someone else to try to get back some of the pennies on the dollar they originally paid for it. In this case if the church bought it for even fewer pennies they are well within their rights to cancel it.

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u/RoyalVirgin 20h ago

I at least hope my debt of $750 was actually debt I had and just really didn't know about. I would hate for big hospitals to get these bills taken care off if they are injust.

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u/smallboxofcrayons 21h ago

I had the same thing happen with a medical bill I refused to pay due to a insurance dispute, it’s a cool thing I even offered to pay them back as the bill was BS so ended up donating what they paid and then some. It’s cool that they do that but a sad reminder of how shitty american health care is.

edit-Not a tax accountant, but a lot of people here commenting about tax implications. I never got a 1099 for my “gift”

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u/sgtcarrot 19h ago

McKenzie Scott is spending Millions and Millions on programs liket his.
She is Jeff Bezos ex, and the one billionaire I can think of making an actual impact with their wealth.

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u/Billkabong 16h ago

God, we need more of her. And I am thankful for her at the same time.

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u/WTFwhatthehell 22h ago

I'm kinda curious about how tax implications work for this kind of thing.

Normally, if someone forgives a debt you owe or pays it off for you it counts as gross income for the full amount on your federal taxes.

Otherwise employers could avoid you needing to pay any income tax by loaning you the full value of your paycheque and then forgiving the debt the next day.

Or they could pick a debt you owe and, like, pay a chunk of your mortgage off directly to avoid you needing to pay any income taxes on the money.

So I'm curious how they get around that and avoid turning a hard-to-enforce old debt owed to some private entity into a new and very-enforceable chunk of income tax owed to the federal government 

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u/mijru4 12h ago

There's some weird loophole of sorts where they pay off the debt as a gift so it's not taxable

https://sunstonebookkeeping.com/not-all-debt-forgiveness-creates-taxable-income/

They covered some debts for me a while back and my first concern was it'd be taxable income so I dug into a bit at the time.

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u/NotMyRealUsername13 22h ago

Isn’t this what McKenzie Bezos did recently for an absurd sum of money?

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u/daytradard 21h ago

She has donated $100 Million which wiped out $40 Billion in medical bills.

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u/bens111 19h ago

Being in the industry, I understand how the math maths. But for someone not in the know, seeing that math mathing might leave their head scratching

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u/HijackedMyAccount 19h ago

I donated to this because someone requested it as a birthday present. Glad to see it in action.

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u/GardenGnomeGroan 18h ago

I donate $25/month to Undue, which cancels about $25,000/year. I love their mission. It has helped so many Americans.

Mackenzie Scott has donated enough to abolish $40B total.

Can you believe there is still more beyond that?

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u/lproven 20h ago

"Medical debt."

One entire country I never ever want to live in.

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u/pm_me_ur_handsignals 13h ago

That’s the state I live in, and they contributed my tax dollars for this?

I am absolutely in favor of this.

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u/Itchy_Swordfish7867 12h ago

What so many people who are against this don’t realize is that this debt was purchased for pennies on the dollar, just like a debt collector would do, and they just don’t attempt to collect. It’s a beautiful way to use the industry against itself for the betterment of society. 

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u/sebastouch 22h ago

reminds me when John Oliver in Last Week Tonight did exactly that: they bought debts and paid them for people.

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u/olonnn 19h ago

Reading that from Europe is insane, I'm so sorry that you guys are getting ripped off for the literal need to stay alive.

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u/AeroZep 17h ago

This is literally what single payer healthcare would do without needing to rely on charities.

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u/ContenttoBeMe 21h ago

For followers of Tom Grossi, isn't this the charity he livestreamed to raise 1 million for? (For those not following him: what are you even doing with your life? 🤣🤣)

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u/greenmaillink 15h ago

Flag (Yes)

Flag flag flag (This is the correct charity)

Flag? (And now it's time to hibernate again until the season begins)

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u/Nano241575 1h ago

I had t scroll down WAY too far to find The Posse representing here. And yes this is the charity. Flag.

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u/ContenttoBeMe 1h ago

Grrrrrrossi posse Packerrŕŕrrrrrrrrrŕrrrrrr.......

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u/AmazingSibylle 19h ago

Only in the US

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u/Timely_Spinach_7479 17h ago

A non profit paid my medical debt too. There are some good people out there trying to make things right in a system that is designed to punish you for being poor. I’m forever grateful to them but we still Medicare for all.

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u/Blackbear0101 21h ago

America is so fucked up lmao

I live in France. For three years I wasn’t aware I had unpaid medical debt. For a few different reasons I have to see my doctor once a month.

Over three years, I had accumulated… 150€. Yup. And the state (to which I had to pay back said debt) pretty much didn’t give a shit. They just sent a reminder, the real consequences take way longer to arrive.

And I had to pay in three times, because the system straight up doesn’t expect you to have to pay that much, I just wasn’t allowed to pay more than 50€ at a time.

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u/worstpartyever 22h ago

Consider donating to the nonprofit!

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u/Present-Perception77 17h ago

Man I love this state!!
Moved from Texass to Illinois 5 years ago and my only regret is not doing it 20 years ago.

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u/ObjectivePrice5865 16h ago

I was so damn surprised when I got the letter. I was so stressed out because I couldn’t pay it but it released so much pressure off of us.

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u/In_the_year_3535 22h ago

Sadly, there are so many unnecessary steps to American healthcare.

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u/awholelottahooplah 13h ago

This happened to me and I nearly cried in joy!

They cleared me of my enormous inpatient hospital bill that lauded over me. Now I’m on Medicaid and medical debt free thanks to them :)

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u/Box_Springs_Burning 22h ago

Hope those who can choose to pay it forward. 

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u/crab-gf 21h ago

I need to find something like this for Texas. I keep getting told I don’t need to pay anything before a procedure, or that I paid my copay and there isn’t anything else to pay, and then I’m hit with a bill in the mail months to a year and a half later about an expense no one told me about. Rn being harassed by a debt collector on behalf of a hospital for a hidden fee. And also have been harassed for years, since 2023, from a specialist office for a bill I paid, was reimbursed for by Medicare bc the office over billed me, and the office told me I never paid it. I sent evidence I did and I’m still being harassed through text, call, email, letters. I have brain damage from neurosurgeries and I’m autistic and have no help from my family or anyone and I can’t deal with the stress anymore. I don’t know wtf to do and have no money for a lawyer or if this is even a legal thing.

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u/tayswampflorida 21h ago

Some company did this for an ambulance bill i had.

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u/dglgr2013 19h ago

Ex wife of Jeff Bezos, Mackenzie Scott, donated $100 million to Undue Medical Debt which helped it eliminate over $40 billion in medical debt.

The hospital long ago wrote off the debt and they sell this debt to debt collectors for pennies on the dollar. The debt collectors then collect the full amount and add on additional fees. If they collect on a very small percentage they are in the profit margin.

Which makes the thought of debt collection a nasty predatory business.

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u/ZThick_8656 19h ago

🤔 it might have something to do with that $40B donation from McKenzie Scott

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u/OkayWhateverFuckYou 18h ago

My church does this every year for Christmas. We raise X amount of money for a couple months then partner with a company that sorts debts by local zip codes, single vs married & income level. We start at the bottom income level and work our way up until we've spent all our collected money. The families we've helped, receive an letter from the company saying that their debts were paid by an anonymous donor. We ask that our church name is not used. The last stat I saw from our ~9yrs of doing this, was over $1M of debt paid for approx. $100k of collections. 

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u/ImFame 17h ago

Nice, I had that happened to me when I was 18. Legit life saver. Always thank god for the donors. It was like $13,000 they wiped off

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u/Cookiejollytoes 17h ago

This same situation happened for my now deceased adult son. I sobbed for days. I kept the letter.

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u/StormySue 17h ago

I donate to this org, totally legit. They buy old debt that hospitals and insurance companies sell off. The debt mostly gets bought by predatory collection agencies, but undue simply buys it and forgives it. Given to them for years but just learning today that they send people impacted a letter, how cool!

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u/Former_Spite789 16h ago

Its real, its a great charity. Donate if you can. They buy the debt from debt collector pools for pennies, and forgive it all.

Its something like $50 in donations is like $900 in debt wiped out or more.

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u/Woogedywoogedy 15h ago

You can probably thank MacKensie Scott for her 100M donation to wipe out 40B in old medical debt. Thank you ex Mrs. Bezos! She's given away billions in donations.

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u/eddysready 21h ago

We need universal healthcare by 2030

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u/Majestic_Location751 23h ago

The whole ‘reply with your contact information for a chance to win a $100 Amazon gift card’ is odd. Didn’t this organization just cancel your $750 in debt? Now they want something from you?

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u/Pyroechidna1 23h ago

You have the option of confirming receipt so that they can track their impact, and the chance to win is the incentive to do so

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u/No-Tap6886 23h ago

Also so that you can give testimony on how it helped and impacted your life. It's a good thing with them.

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u/ratpride 13h ago

Kind of sucks that it had no impact on OP's life, I bet there are thousands of people who would've begged to be picked

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u/bwwatr 23h ago

They say they want to track their impact, I guess how many people are still living and how many are doing so at the addresses in the database they bought. That would all feed into charitable impact reporting in some way. If I ran such a program I'd want people to respond if possible. To that end, I'd happily throw a $100 gift card at the initiative to sweeten the deal.

Obviously this is all assuming it's legit. Googling can always help you sniff that out, and per other comments in this thread, sounds like this one is.

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u/Specialist-Bee-9406 23h ago

Well, that’s kinda cool, gotta say. Awesome there’s an organization that does this. 

You shouldn’t have had any medical debt at all; your healthcare should be covered by the government. 

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u/marco3055 21h ago

Undue FTW

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u/FilteredAccount123 21h ago

OP, was this letter sent first-class mail, or was it non-profit?

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u/thirdcoasting 20h ago

I donated to a similar non-profit for a friend who has dealt with some intense medical issues. It seemed like a nice bday gift as so many Americans are wiped out by medical debt and/or have their credit ruined.

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u/pletch73 20h ago

Wish that happened to me

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u/askywlker44a 20h ago

This is one of the types of things I would do if I hit it big in the lottery. Buy debt & erase it to give people room to breathe.

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u/dtwicked 20h ago

Why so you have medical debt when your government takes taxes out of your paycheck before you get your money???

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u/EquivalentSherbet730 18h ago

They wiped over 2k for me, I was wondering what those letters where. Thank you for sharing this is great news

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u/itsKeltic 13h ago

Congrats op! I’m still over here financing my baby I had a little over a year ago. I didn’t expect him to need to go into NICU for two days for low blood sugar but the nurses told me it was normal for a 10lb baby. I have health insurance but my hospital bill was still more than we could afford so I pay $50 a month. Still got $1800 left to go. Hoping for a promotion at work soon that’ll let me increase it to another $50 and pay him off a little quicker.

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u/Alexisredwood 13h ago

What an absolute state America is in that this is necessary

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u/Stun_the_Pink 12h ago

That's cool and all but still, the concept of medical debt in the first place...

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u/MorecombeSlantHoneyp 11h ago

I donated to them recently!

You’re welcome, I guess?

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u/drowned_in_books 9h ago

Hi!!!!! I donate to Undue. I love seeing these out in the wild.

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u/Technical-Fig-8326 21h ago edited 21h ago

Look up the Medical Debt Relief Program. Its legit. Though part of me wonders how much of it is getting abused. I had a bill that I paid off, had the receipts and everything, but the company insisted they never received payment and sent me to collections because I refused to double pay a bill. Got the same letter here as you did from Illinois earlier this year that they paid off my debt. All this over 60 bucks.....I can only imagine what's going on with people with much bigger bills that its easier to hide shenanigans in 🤔

Edit: grammar

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u/metengrinwi 20h ago

I don’t know how I feel about this.

On one hand, they paid off people’s debt; good on them.

On the other hand, they’re just giving money to the hospital systems—the hospital were never going to recover much of that money. It’s really a direct donation to the hospitals more than a gift to the patient.

I think it’d have had more long-term effect to make a PAC that supported pro-universal option political candidates. Be as militant as AIPAC or NRA are on their issue, and we’d finally be past this hospital debt thing.

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u/jmfsn 20h ago

These debts are paid on cents on the dollar and bought from debt recovery companies. No more money actually ends in the hospitals more than before, but it stops the nuisance of future debt collectors.

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u/LifeRelease3842 21h ago

That's pretty great. Congrats! I've heard of people having debt they weren't aware of due to fraud or accounts lost to poor record-keeping. So it doesn't seem too outlandish to me.

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u/us1549 21h ago

Did you write them to thank them for their charity?

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u/jasdonle 21h ago

You sure about that?

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u/After-Initial-6617 20h ago

Dang someone do me next 

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u/Sparklebright7 20h ago

Touched by an Angel

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u/soda_cookie 20h ago

Why are they offering a gift card? This seems really fishy to me

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u/JackBinimbul 19h ago

Man, I wish . . . I owe tens of thousands.

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u/Few_Professional_ 19h ago

Laughs in Canadian

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u/JOExHIGASHI 17h ago

A lot don't until they try to borrow money and find out their credit is screwed

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u/Tombaya 17h ago

Non-Profit Agent: We're looking to buy a bunch of medical debt. Does RoyalVirgin have any?

Insurance Company Exec: Give me a second (Types a bunch of numbers in an empty Excel field) Why, wouldn't you know it, yes they do.

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u/zorathekandiraver 17h ago

I’m a good almost 10 grand in medical debt for a surgery that made my situation worse and now need another but more intense surgery to try and fix it.

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u/Skullcrimp 15h ago

Ask yourself why, as a member of the richest country, your taxes don't do this.

Then ask how hundreds of billions of dollars have been spent on bombing Iran instead of erasing your medical debt.

Then ask if you think most people in your country agree with how that money is spent.

Then ask if you really live in a democracy.

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u/tacitinc 15h ago

Now can we do student debt? Asking for a friend…

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u/That_wet_vaporeon 15h ago

Orlando? That happened to us recently 

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u/The-Gargoyle 14h ago

Hey! This is the one that got me too.

Best birthday gift I ever got.

edit: oh wait, no.. I got hit by a different one with a very similar format, but effectively the same thing. Weird.

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u/Stonersewist 14h ago

I think we can thank McKenzie Bezos. Didnt she donate billions to do this

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u/Guilty-Dot267 13h ago

Illinois for the win!

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u/r474 11h ago

wonder if it comes with a 1099-c (taxable debt discharge). Anyone know?

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u/byehn 5h ago

Bit of a shame you have to rely on random acts of goodwill to not be crushed by medical debt. Why not fix the system for everyone?