Crushing Medical Debt: The Movement to Revolutionize Healthcare Access

In the United States, medical debt isn’t just a financial burden; it’s a reflection of deeper systemic inequities that force individuals to take on “survival debt” — debt incurred just to meet basic needs like health care. Today, Mayor Carter joins us alongside Allison Sesso, the Executive Director of Undue Medical Debt, to explore how cities can lead the charge in addressing medical debt — and what it means to rethink our systems of care, equity, and economic justice.

St. Paul Mayor Melvin Carter joins us alongside Allison Sesso of Undue Medical Debt to explore how cities can lead the charge in addressing medical debt — and what it means to rethink our systems of care, equity, and economic justice.

This week, in the final days of the Biden administration, the federal Consumer Financial Protection Bureau finalized a rule to prevent medical debt from being included in credit scores. It's a reminder that in medical debt isn’t just a financial burden; it’s a reflection of deeper systemic inequities that force individuals to take on “survival debt” — debt incurred just to meet basic needs like health care – and can impact their lives for years to come.

That's why more and more cities, counties and states have been pairing up with the national nonprofit Undue Medical Debt to purchase their residents' debt portfolios from collectors and healthcare providers – and then forgiving the debts en masse, paying mere pennies on the dollar to provide serious financial relief. Many have been using federal funds from the American Rescue Plan to do so.

“We have folks who look at us and say, this doesn't solve health care,” says St. Paul Mayor Melvin Carter, who worked with Undue Medical Debt to erase $100 million in medical debt for thousands of residents. “And I go, no, that's absolutely accurate. This doesn't solve health care for the planet, for the country, for even our city. It does provide a real, clear breath of fresh air for a whole lot of people who need it right now.”