Atrium Health joins N.C. medical debt relief plan
The program offers higher federal payments to hospitals that forgive uncollectable medical debt
The following article appeared in the August 12, 2024, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
State’s largest hospital system expresses concerns but joins others in signing on to N.C.’s initiative
All of the state’s biggest hospital systems — including Atrium Health and Novant Health — have opted into a new medical debt relief initiative that aims to wipe out old medical debt for up to 2 million North Carolinians.
The program promises higher federal payments to hospitals that agree to forgive medical debt deemed uncollectable for low- and middle-income patients.
Hospitals must also provide charity care and specific discounts to low-income patients based on their income, take proactive steps to make sure eligible patients get those discounts and refrain from reporting medical debt to credit agencies.
The Ledger reported on Friday that many big hospital systems in the state were signing on but that Atrium had not declared whether it was participating. When agreeing on Friday, just ahead of the state’s deadline, Atrium outlined several concerns about the program. In a letter to the state, the hospital said the program could hurt financially struggling rural hospitals and discourage people and businesses from buying health insurance, potentially pushing up premiums.
Atrium also noted hospitals account for less than half of U.S. healthcare spending. It said other players that help drive up the cost of care, such as health insurance companies with high deductibles, should have been factored into the state’s policy.
More than 137,000 Mecklenburg County residents who have $3.4M in medical debt would be eligible for relief if all of the state’s hospitals participate, according to state health officials. —Michelle Crouch
Related Ledger/N.C. Health News articles:
“N.C. hospitals are signing on to medical debt relief plan” (Aug. 9)
“Can cash coax hospitals to erase medical debt?” (July 19)
“Charlotte leaders urge Atrium to consider new approach on medical debt” (Jan. 29, 2024)
“Charlotte hospitals say ‘no thanks’ to charity’s efforts to reduce medical debt” (Dec. 11, 2023)
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