Public Policy as a Solution to Medical Debt Crisis

Medical debt is a leading cause of bankruptcy in the U.S., with nearly two-thirds of bankruptcies attributing this issue to their financial distress. In North Carolina, a significant proportion of the population faces medical debt, with a plan initiated to alleviate $4 billion in debt, compelling health systems to adhere to strict future debt management rules in exchange for reimbursement. This intervention illustrates a proactive approach by the state government to address a systemic problem impacting citizens. The necessity for systemic change is underscored by the evidence that many seek financial help through fundraising platforms with limited success. While initiatives like RIP Medical Debt provide crucial relief, they represent temporary fixes rather than comprehensive solutions. Calls for responsibility among healthcare providers and policy changes that prioritize accessible primary care are needed to prevent future medical debt. The current expenditure on hospitals highlights the inefficiencies of a system that could, with better planning and investment, reduce unnecessary financial burdens on patients.