A new effort has erased $6.5 billion in medical debt—here’s what to know
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Veronica E.
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Imagine checking your mail and finding a letter saying your medical debt has been completely erased.
For millions of Americans, this isn’t just wishful thinking—it’s already happened.
In a sweeping new initiative, more than 2.5 million people have had their medical debt wiped clean, and the total amount forgiven is already over $6.5 billion.
If medical bills have ever caused you stress or limited your options, you’ll want to know what’s behind this effort.
Even better, this may just be the beginning of something bigger across the country.

Why medical debt relief matters more than ever
Medical debt has become one of the most pressing financial burdens in the US, especially for older adults.
Even with Medicare, expenses like co-pays, surprise bills, or procedures not fully covered can pile up fast.
A 2024 analysis from KFF found that Americans are carrying at least $220 billion in medical debt.
For many, it’s not a result of poor budgeting but a health emergency they never asked for.
As North Carolina Governor Josh Stein put it, "No one chooses to have a heart attack or get diagnosed with a chronic condition—you just have to deal with it."
The consequences go far beyond unpaid bills.
Medical debt often drags down credit scores and blocks access to loans, housing, and other opportunities.
It forces people to skip care, delay treatments, or make impossible choices between medications and groceries.
Also read: Medical debt might still hurt your credit score—here’s what changed and how to protect yourself
A first-of-its-kind program with powerful results
North Carolina is leading the way with a medical debt relief program that began in 2023.
It’s the first statewide initiative of its kind in the nation, and it’s already changing lives.
Here’s how it works:
Instead, it has already exceeded expectations, wiping out $6.5 billion for more than 2.5 million people—and more debt is expected to be erased in the months ahead.
Also read: Struggling with debt? These 5 categories might qualify for forgiveness
Could you be one of the beneficiaries?
If you live in North Carolina, it’s very possible you or someone you care about has already benefited or will soon.
On average, individuals are seeing around $2,600 in medical debt cleared.
Letters are still being mailed to eligible recipients, so it’s a good idea to keep a close eye on your mailbox.
These notifications may come from your hospital or from the nonprofit organization Undue Medical Debt, which has been helping to implement the program.
Even if you’re not in North Carolina, this initiative may be a preview of what’s to come.
Lawmakers and advocacy groups across the country are paying attention, and similar programs may begin rolling out in other states if momentum continues.
Also read: At 80, he’s still working—just to pay his late wife’s $80,000 hospital debt
Why this change matters beyond money
Medical debt relief can transform more than a person’s finances—it can lift emotional and mental burdens, too.
Some of the biggest benefits include:
As Dr. Dev Sangvai, North Carolina’s Secretary of Health and Human Services, explained, "Countless times, I've worked with patients who have foregone care because they were worried they would be asked to pay their debt if they went to the hospital."
That kind of fear can be dangerous—and removing it can literally save lives.
Also read: How one woman used AI to wipe out $12K in debt—and how you can too
What happens next?
The program is ongoing, and more debt relief letters will continue to go out in the coming weeks and months.
State leaders are hopeful this model can inspire similar policies elsewhere.
If you’re in North Carolina, watch for a letter.
If you’re in another state, stay informed—your state could be next to take action.
Also read: The hidden debt crisis: see where Americans are struggling the most
How to protect yourself from future medical debt
While this program is a major win, it’s also a good reminder to stay proactive about your medical expenses.
A few helpful steps include:
Programs like North Carolina’s show that real change is possible—and that debt relief can restore not just credit scores, but peace of mind.
Whether you're directly impacted or simply hopeful for a better system, staying informed is the first step toward protecting your financial and physical well-being.
Read next:
Have you received one of these letters? Has medical debt ever affected your health, your credit, or your ability to enjoy retirement? We’d love to hear how you managed it—or how relief like this has helped you or your family. Sharing your experience could inspire or guide someone else going through the same thing.
For millions of Americans, this isn’t just wishful thinking—it’s already happened.
In a sweeping new initiative, more than 2.5 million people have had their medical debt wiped clean, and the total amount forgiven is already over $6.5 billion.
If medical bills have ever caused you stress or limited your options, you’ll want to know what’s behind this effort.
Even better, this may just be the beginning of something bigger across the country.

A groundbreaking medical debt relief program is offering hope and financial freedom to millions. Image Source: Pexels / Dalila Dalprat.
Why medical debt relief matters more than ever
Medical debt has become one of the most pressing financial burdens in the US, especially for older adults.
Even with Medicare, expenses like co-pays, surprise bills, or procedures not fully covered can pile up fast.
A 2024 analysis from KFF found that Americans are carrying at least $220 billion in medical debt.
For many, it’s not a result of poor budgeting but a health emergency they never asked for.
As North Carolina Governor Josh Stein put it, "No one chooses to have a heart attack or get diagnosed with a chronic condition—you just have to deal with it."
The consequences go far beyond unpaid bills.
Medical debt often drags down credit scores and blocks access to loans, housing, and other opportunities.
It forces people to skip care, delay treatments, or make impossible choices between medications and groceries.
Also read: Medical debt might still hurt your credit score—here’s what changed and how to protect yourself
A first-of-its-kind program with powerful results
North Carolina is leading the way with a medical debt relief program that began in 2023.
It’s the first statewide initiative of its kind in the nation, and it’s already changing lives.
Here’s how it works:
- Hospitals were given extra Medicaid funding from the federal government—but only if they agreed to erase specific medical debts.
- The program doesn’t just help Medicaid recipients. Anyone who meets income guidelines, even if they’re not enrolled in Medicaid, could qualify.
- Participating hospitals had to revise their billing policies, automatically enrolling more patients into charity care programs and limiting aggressive debt collection tactics.
- Any debt forgiven through the program is removed from credit reports, giving individuals a financial fresh start.
Instead, it has already exceeded expectations, wiping out $6.5 billion for more than 2.5 million people—and more debt is expected to be erased in the months ahead.
Also read: Struggling with debt? These 5 categories might qualify for forgiveness
Could you be one of the beneficiaries?
If you live in North Carolina, it’s very possible you or someone you care about has already benefited or will soon.
On average, individuals are seeing around $2,600 in medical debt cleared.
Letters are still being mailed to eligible recipients, so it’s a good idea to keep a close eye on your mailbox.
These notifications may come from your hospital or from the nonprofit organization Undue Medical Debt, which has been helping to implement the program.
Even if you’re not in North Carolina, this initiative may be a preview of what’s to come.
Lawmakers and advocacy groups across the country are paying attention, and similar programs may begin rolling out in other states if momentum continues.
Also read: At 80, he’s still working—just to pay his late wife’s $80,000 hospital debt
Why this change matters beyond money
Medical debt relief can transform more than a person’s finances—it can lift emotional and mental burdens, too.
Some of the biggest benefits include:
- A cleaner credit report that makes it easier to rent an apartment, secure a loan, or even get a job.
- Lower levels of stress and anxiety, which are known to affect overall physical health.
- Greater freedom to seek medical care without fear of collections or overwhelming bills.
As Dr. Dev Sangvai, North Carolina’s Secretary of Health and Human Services, explained, "Countless times, I've worked with patients who have foregone care because they were worried they would be asked to pay their debt if they went to the hospital."
That kind of fear can be dangerous—and removing it can literally save lives.
Also read: How one woman used AI to wipe out $12K in debt—and how you can too
What happens next?
The program is ongoing, and more debt relief letters will continue to go out in the coming weeks and months.
State leaders are hopeful this model can inspire similar policies elsewhere.
If you’re in North Carolina, watch for a letter.
If you’re in another state, stay informed—your state could be next to take action.
Also read: The hidden debt crisis: see where Americans are struggling the most
How to protect yourself from future medical debt
While this program is a major win, it’s also a good reminder to stay proactive about your medical expenses.
A few helpful steps include:
- Understand your insurance. Review your Medicare or other plans each year so you know what’s covered.
- Ask about financial assistance. Many hospitals offer charity care, even if you don’t qualify for Medicaid.
- Negotiate when needed. If you receive a large bill, call the provider—payment plans or discounts may be available.
- Double-check your statements. Billing errors happen more often than you might think.
- Stay up to date. Follow The GrayVine and other reliable sources for news about debt relief programs and healthcare tips.
Programs like North Carolina’s show that real change is possible—and that debt relief can restore not just credit scores, but peace of mind.
Whether you're directly impacted or simply hopeful for a better system, staying informed is the first step toward protecting your financial and physical well-being.
Read next:
- What you need to know about facility fees—and how to fight back
- This simple trick could save you thousands on your hospital bill—here’s how
- What one knee surgery might cost you—$12,000 or $100,000?
Key Takeaways
- Over 2.5 million North Carolina residents have had more than $6.5 billion in medical debt erased through a first-of-its-kind relief program.
- The initiative used federal Medicaid funds and required hospitals to forgive qualifying debt and update their billing practices to prevent future medical liabilities.
- On average, individuals saw $2,600 in debt removed, and these cleared balances are also being erased from credit reports.
- Hospitals and the nonprofit Undue Medical Debt are continuing to notify eligible recipients, and similar programs may expand to other states.
Have you received one of these letters? Has medical debt ever affected your health, your credit, or your ability to enjoy retirement? We’d love to hear how you managed it—or how relief like this has helped you or your family. Sharing your experience could inspire or guide someone else going through the same thing.