>> For many American families, medical debt can be devastating, according to recent data from the Kaiser Family Foundation, 41% of adults in the U.S. have medical debt that equates to more than 100 million Americans who owe upwards of 220 billion dollars in health care costs.

Cook County launched the Medical Debt relief initiative in 2022.

In an effort to help residents with the burden today, the program has a raced 665 million dollars in medical debt for nearly 557,000 Cook County residents.

Joining us with more are Cook County Board.

President Toni Preckwinkle and joining us via Zoom, Courtney were P story.

Vice president of government initiatives at undue medical debt, a nonprofit that works to erase medical debt.

Thanks to both for joining us.

Madam President, I want to start with you.

665 million dollars.

More than half a billion?

More than half a billion?

Yes.

To.

What do you attribute that success?

Well, first of all, I want express my appreciation for the opportunity to share this good news.

>> With our viewers medical debt is our partner says work.

They've done around the country with philanthropy and we discovered it and decide that we would try to do it as a government entity.

And we used our American Rescue Plan Act resources, the money that Joe Biden and Congress allocated to help.

Governments respond to the pandemic to provide this relief for residents and again, 665 million dollars for 555 1000.

Residents of Cook County.

That's a lot of a lot of people.

A lot of human.

Sure.

It means a lot for that to be forgiven.

Yeah.

You know, one of the main reasons people declare bankruptcy as they can't pay their medical debt and it disproportionately impacts communities of color, black and brown communities.

They have higher rates of medical debt.

Then the majority in this country and as a result of these efforts, you know, that burden that stress has been really for people And I'm grateful to, as I said medical that is our partner in this work.

>> Courtney, we have talked about this issue on this program before >> how does that Explain it for us.

Please buying medical debt.

>> Yes, so we work directly with hospitals in the secondary market to purchase medical die in Once we do that, we forget we purchase that that for typically pennies on the dollar.

And if we have that, made our program qualifications.

You will receive a letter in the mail letting you know that is no longer road.

Pretty densely the precept.

That's really it.

>> Yeah, pretty simple.

So you know, you buy it for less than it is worth right.

So I guess I'm trying to understand how this works for hospitals because 665 million dollars.

That's the day.

But no one spent 665 million dollars.

>> Correct.

So we typically purchase at that is older on club considered collectible by hospitals.

So they are not technically actively collecting on it, but it is still owed and the the individual still knows that that that is out there and vote by So we work with hospitals to purchase that that just in a similar way that they would sell it to a secondary market collector, which are those collectors that will try to call you put you want to play month payment plan and then collect on that debt.

We won't do that.

We will just purchased that data and then forget it.

>> 2 pennies on the dollar.

So if Iowa Hospital, $10,000 and you all purchase that debts, approximately, how much might you pay for it?

Just to give folks a sense of of.

How it's how it Civically typically for government partners, one dollar of government funding equates to $167 of medical debt relief.

>> And then a $1.60 something that we would pay for that.

>> Wow.

Okay.

Yeah.

Madam President, give us a sense of of, you know, we talked about it a little bit how vast the problem of medical debt is.

Well, first of all, I believe in universal health care.

This is the richest country in the world.

>> And the idea that folks can't get good medical care because they can't pay insurance rates.

You know, it's ridiculous and I am grateful to undo medical debt for helping us kind of level the playing field here until such time as we have universal health care, we have to do everything we can to support our residents and ensure that they have access to care.

And there's not a burden to them financially.

>> Who qualifies for this?

medical that about the algorithms they use to determine eligibility.

But I am very grateful to them.

This is work they've done around the country and we're grateful for the work they've done here in Cook County, of course, and into what we've got a quick graphic on screen, obviously have to be a cook county.

Residents your income must be up to 400%.

>> Of the federal poverty level and 5% or more of household income in medical debt.

Madam Practical, Madam President, we also have data so Cook County data that's collected by medical debt.

It shows where the value of debt that has been a raced is the greatest in Cook County.

on this map, the dark blue and the turquoise locations.

That is where the dollar amount is.

The greatest, the greatest amount owed.

What does this tell you when you look at this information?

>> Well, I would say, you know, if you if you look at what the county, they're sort of one map.

No matter what you're looking at, if you're looking at poverty, rates are on employment are food deserts and the burden of medical debt and reflects that same pattern.

And we see on the West side and the South side in the south suburbs that there a significant impact of the program, which means those folks were disproportionately burdened with medical debt.

>> Right, which we it also tells us that largely our communities of color are experiencing this medical that that's right.

Courtney.

We also have data of course, from your organization from undue medical debt, showing that more than 100 million upwards of 220 billion dollars, 7 in 10 adults can't afford to pay medical bills.

55% of adults to for medical care.

Give us a sense of what people are are struggling with her challenge by when they've got medical debt.

This hefty with water.

What else is is not working out for them with a missing out on.

>> Yeah.

We know that medical causes folks to delay seeking care so they have to they have a problem.

They will not go to the doctor with that problem more easily treatable.

So by the time they are seeking care, it is going to be more complex and more costly.

We that individuals do have at least $500 for a medical emergency.

So we know that if something happens, you're going to have to go seek care.

And then you're gonna have to make difficult decisions about what those are going pay.

Are you gonna pay your rent?

How are you going to be able to feed your family and how are you going to get that care that you need?

We know that medical data is out of choice, of necessity.

And we need to make sure that folks feel comfortable and safe accessing care and that the way that we finance health care in this country isn't causing them unnecessary mental stress.

>> The state has a similar program.

What are some of the challenges in getting this going?

madam President, when it come to you first on that.

But, Courtney, I know that you will work with government agencies as well.

I think under medical debt is a partner with the state as well.

So we have the same provider of the service.

And, you know, I just want to express my appreciation to the health agencies that have worked with us and then fly all of the University of Chicago Sinai, Saint Anthony recently joined us fight could be so we've got lots of partners in this work and really grateful we couldn't do it without those partnerships and, you know, a new medical that as is doing this now and number of places in the country where the first government entity to do it.

But >> not just our state, but units of government across the country have now become this work.

>> Courtney, why aren't more or how can you get local and state government agencies to replicate this to do this as well?

>> Yeah, we actually are working with over 25 cities, counties and states across the country and more expressing interest in working with us every day.

So we're really excited about We do think it's a really easy value proposition for governments, the return on investment and the impact of the communities.

It's just so great.

And we encourage everybody that's interested in working with us to reach out.

you know, we're happy to explain more about how how we work our model works and how it can be impactful in your community.

>> Okay.

That's what we'll have to leave 665 million dollars.

great deal of money.

Congrats to you all.

And the