Ninety-thousand Washington, D.C., residents could receive medical debt cancellation under Mayor Muriel Bowser's budget plan, which will cancel up to $90 million in medical debt, CBS affiliate WUSA reported March 30.
The initiative is funded from a surplus in the fiscal year 2023. Beginning March 31, the district will look to have outside debt purchasers buy down the debt.
To qualify, individuals must have income of no more than four times the poverty level or have medical debt that totals more than 5 percent of their household income. The cancellation will happen automatically.
"The disproportionate impact of medical debt — with residents of color three times more likely to hold medical debt in D.C. — has a ripple effect on how it impacts the lives of our residents. Medical debt leads to damaged credit scores which can then prevent an individual from being able to buy a home, obtain a job, or go to college," Ms. Bowser said. "By investing in buying down medical debt, we're putting money back in people's pockets and giving more people a fair shot. This is an investment in a more equitable city and in better health, housing, and employment opportunities for our residents."