St. Louis donations wipe away $13 million in medical debt

ST. LOUIS (AP) — Thousands of St. Louis-area families were freed from a major financial burden thanks to a charitable effort that is increasingly popular among churches and other organizations trying to help the needy — eliminating medical debt.

Money raised at more than a dozen United Church of Christ congregations and a donation from the St. Louis-based Deaconess Foundation wiped away nearly $13 million in medical debt for 11,108 families in St. Louis city and county. United Church of Christ officials and civic leaders announced details Saturday. The church was also sending letters this weekend to those whose debt was wiped out.

Rebecca Turner, a pastor in Maplewood, Missouri, said that for many families, medical debt is “often so enormous that there is no way to repay it. Very often they lose their homes, their vehicles, their wages are garnished, and once that happens, it’s nearly impossible to get out of poverty.

“It’s our prayer that for many of the families who receive this forgiveness of debt, it will be a fresh start,” Turner said. “We pray it gives them hope.”

It is believed that more than 43 million Americans owe $75 billion in past-due medical debt. Hospitals and other health care organizations often write off bills deemed uncollectible, but they also sell the debt to collection agencies at a huge discount, often about 1 cent on the dollar. The collection agencies then make money by seeking payment from debtors who are often poor and lack adequate health insurance.

The St. Louis-area congregations worked with RIP Medical Debt, a New York state-based nonprofit that buys medical debt and works with churches and charitable groups to pay it off.

Thirteen United Church of Christ congregations raised $65,000 and the Deaconess Foundation, a UCC ministry that seeks to improve the health of the...