Proposal to erase unpaid medical debt in Fayette County heard at City Hall

Lexington City Council members are considering ways to help local citizens deal with unpaid medical bills. Members of a Council committee took in a presentation Tuesday by a non-profit working in that space.

The process used by Undue Medical Debt is aimed at assisting with the payment of bills outside of insurance coverage. Eva Marie Stahl is vice president of public policy and program management. She said Undue Medical Debt approaches hospitals with pennies on the dollar offers.

“Sell the debt to us, a charity, let us take the debt off your books. And we’re going to run criteria to make sure that we’re only helping those that are most in need,” said Stahl.

Stahl said the criteria is living at 400% of the federal poverty level or below or if medical bills are more than 5% of the household income. Undue Medical Debt is working with local governments in other states. Lexington Vice Mayor Dan Wu said he would be bringing a request when Council considers surplus fund allocations this fall.

Wu said collaboration could have dual benefits.

“Not only relieve medical debt here in Fayette County but also to keep people out of medical debt in the future and I think it’s potentially a transformative project,” said Wu.

In addition to purchasing medical debt from hospitals, Stahl noted it can also involve doctor and ambulance bills.

Stahl said medical debt for people is not a debt of choice but of necessity. To help these individuals avoid falling back into medical debt, her non-profit may suggest financial counseling, Medicaid enrollment, and involvement with a community health center.

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