More than 112,000 Indiana residents will soon have their medical debt erased

INDIANAPOLIS — A recent joint investment is going to help eliminate more than $239.6 million in medical debt for Hoosiers.

Over 112,000 people in Boone, Hamilton, Hancock, Hendricks, Marion, Morgan and Putnam counties will have their debt erased thanks to the venture by the United Neighborhood Centers of Indianapolis, United Way of Central Indiana and an anonymous donor. $1.2 million or the donation was from the anonymous donor while $500,000 was donated by MacKenzi Scott, Amazon founder Jeff Bezos ex wife.

Those receiving relief will get a letter in the mail this month from Undue Medical Debt sharing that some or all of their medical debt was erased.

You can view a sample letter below.

WRTV

There is no application, and debt relief is provided as a gift, which means people are exempt from paying income tax on the abolished debt.

“Today’s announcement is not just about a crisis intervention. At United Way, we’re fighting for the long-term health and economic well-being of every person in our community,” Fred Payne, president and CEO of United Way of Central Indiana, said at Monday’s press conference at Edna Martin Christian Center at 37 Place.

Together, the combined donations to Undue Medical Debt will abolish debt as follows:

• Boone County: more than $437,300 of debt relieved for 262 people;
• Hamilton County: more than $1.2 million of debt relieved for 737 people;
• Hancock County: more than $466,600 of debt relieved for 313 people;
• Hendricks County: more than $2.2 million of debt relieved for 1,286 people;
• Marion County: more than $234.2 million of debt relieved for 108,699 people;
• Morgan County: more than $710,200 of debt relieved for 496 people;
• Putnam County: more than $272,100 of debt relieved for 225 people.

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In Marion County, one in five people have medical debt in collections, and Indiana ranks 11th highest in the U.S. for the number of residents with medical debt in collections, Frame said.