North Carolina has erased over $6.5 billion in medical debt for more than 2.5 million residents through a government-led initiative launched in July 2024, which has already exceeded its initial projections.

The program involves all 99 eligible hospitals in the state, including rural and university-connected facilities, which participated within a month of the announcement, utilizing conditions approved by the U.S. Centers for Medicare and Medicaid Services.

Federal approval was secured for this innovative effort, which uses Medicaid incentives to promote debt cancellation and address both existing and future medical debt, ultimately reducing financial barriers to healthcare.

While the initiative has been highly successful, some hospitals initially expressed concerns about potential financial pressures and future policy changes that could impact their ability to expand low-income patient programs.

The program also includes measures to curb aggressive debt collection practices, and residents do not need to take any action to qualify, with further details available on the North Carolina DHHS website.

State leaders, including Governor Josh Stein, advocate for full Medicaid funding and renewal of ACA subsidies, emphasizing that federal shutdowns have not affected the program and that long-term sustainability depends on continued support.

Healthcare experts consider North Carolina's approach a pioneering model that other states might adopt, with some, like Arizona, already using federal funds to erase residents' medical debt.

The initiative features an FAQ webpage to guide residents on eligibility and participation, ensuring broad awareness and understanding of the program.

The effort is part of broader policy discussions addressing Medicaid underfunding, extending ACA subsidies, and navigating federal government disputes impacting healthcare access.

In addition to debt relief, the program promotes pro-patient policies and hospital financial stability, serving as a potential blueprint for other states.

Officials plan to continue the initiative throughout the next year to fully implement the relief efforts across North Carolina.

Governor Stein credited collaboration with former Governor Roy Cooper, DHHS Secretary Kody Kinsley, and participating hospitals for the program's success, urging the General Assembly to fully fund Medicaid to sustain this momentum.

The bipartisan support in the legislature underscores a shared commitment to healthcare reform, with the program's success seen as a testament to effective collaboration.