MONTPELIER, Vt. (WCAX) – Vermonters’ medical debt could be slashed under a new proposal from state lawmakers and health care leaders.
Over 60,000 residents have some kind of medical debt. Experts say missing payments can take a heavy toll on families’ financial well-being.
Under a proposal unveiled Tuesday, Vermont would partner with nonprofit Undue to erase up to $100 million of medical debt. The nonprofit would then negotiate with providers to purchase that debt from low-income and Vermonters with old debt.
“We hear from Vermonters when they get advice that they need more care or they have a condition they’re worried about, they are afraid to go get care because they are afraid to incur more debt,” said Vermont Health Care Advocate Mike Fisher.
The proposal would cost the state around $1 million. Other states, including Rhode Island, have taken similar steps to tackle rising rates of medical debt.