Arizona Makes Debt a Thing of the Past

No one obviously wants to end up in the hospital. The pain required to be admitted, the long hours waiting, and the various tests admitted to you make any medical attention something that most would prefer to never face again.

Unfortunately due to our relatively weak bodies, we are subject to medical help from time to time. The real issue begins with the back-breaking bills that pile up, leading to massive debt for one in twelve Americans.

Arizona's Plan to Cut Debt

Arizona Governor Katie Hobbs announced the state's response to rising medical debt, and it's planning to help everyone. The state will pull from the federal COVID relief funds, about $30 Million, to pay off Arizona resident's medical bills.

$30 Million may not be enough to outright cancel all medical debt in Arizona, but luckily, the debt can be purchased for pennies compared to the original amount, and that $30 Million can be stretched to cover up to $2 Billion of debt.

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Who's Eligible?

If you have accrued any amount of medical debt, you likely want to take advantage of this. Unfortunately, not everyone is included in this payback, but it will help those who really need the break.

Residents who have medical debt equal to or over 5% of their yearly income or that makeup to 400% of the federal poverty line will be eligible to have their debt paid. It may be hard to accept that not every debt will be canceled, but those who will see the rewards are the ones who truly need them, as they may never have the chance to fully pay back that debt.

This project should be completed in around two years, says Hobbs.