Gov. Katie Hobbs' office says it's partnered with a nonprofit to erase $642 million in medical debt owed by almost half-a-million Arizonans.

Another more than $200 million in medical debt has been wiped out for Arizonans. And the recipients are going to know who to thank: Gov. Katie Hobbs.

The new figure was announced Monday by Allison Sasso. She’s the president and CEO of Undue Medical Debt, a company that agreed earlier this year to use some $10 million in state American Rescue Plan COVID relief dollars to buy up medical debt from hospitals and doctors for a few pennies on the dollar, eliminating a negative mark on the credit reports of those who racked up the bills.

All totaled, according to the governor’s office, the program has so far erased $642 million owed by more than 485,000 Arizonans.

  • mic_check_one_two@lemmy.dbzer0.comEnglish
    2·
    1 day ago

    Not quite. The debt collector is the one who reports it to the credit agency. And those debt collectors can do something called a “pay for delete” which means they completely remove it from your credit report, as if it never existed. And if the government is the debt collector, they can choose to delete the debt (forgiving it) whenever they want.