North Carolina Moves to Cancel Medical Debt For 2 Million People

Photo byTown Talks

In a historic move, millions of North Carolinians burdened by medical debt will soon see their accounts cleared thanks to new state legislation.

By July 1, 2025, nearly 100 acute care hospitals across the state will begin forgiving medical debt for an estimated two million low- and middle-income residents, wiping out approximately $4 billion in debt. This relief applies to medical debts dating back a decade to 2014.

Governor Roy Cooper praised the move, saying it will make a "life-changing difference" for families across the state. The relief applies to Medicaid beneficiaries and those with incomes at or below 350 percent of the federal poverty level. Additionally, medical debt exceeding 5 percent of a patient's annual income will be wiped.

Here are the list of participating hospitals includes the largest hospital systems in North Carolina.

By January 1, 2025, those in public benefit programs like SNAP or WIC will automatically qualify for charity care. Participating hospitals will receive increased Medicaid reimbursements under the Healthcare Access and Stabilization Program (HASP).

This initiative aims to reduce the state’s high rate of medical debt, providing significant relief to struggling residents.