St. Louis & IL lawmakers working to pass legislation erasing medical debt for thousands

Millions of dollars of medical debt could be wiped out
Published: Apr. 22, 2024 at 5:39 PM CDT

ST. LOUIS, Mo. (First Alert 4) - Lawmakers on both sides of the Mississippi River are working to pass legislation erasing millions of dollars in medical debt for thousands of people.

ST. LOUIS

Recently, the St. Louis Board of Aldermen unanimously passed a bill erasing $80 million in medical debt, but the city would only spend $800,000 in COVID relief funding to do so. The city would work with the organization Undue Medical Debt, formerly known as RIP Medical Debt, to buy bundles of debt at a reduced cost and pay it off, bill sponsor Rasheen Aldridge said. Cook County, Illinois and other governments have used coronavirus relief funds to pay off resident’s medical bills by partnering with the organization.

Aldridge said Undue Medical Debt would work with local hospitals to clear debt for most of the city’s poorest residents. There is no need for residents to apply. Aldridge said selected individuals would receive letters in the mail.

Mayor Tishaura Jones now needs to sign off on the bill. Aldridge told First Alert 4 he expects Jones to sign it. A spokesperson for the mayor’s office told First Alert 4 the mayor is still reviewing legislation passed out of the Board of Aldermen last week.

ILLINOIS

Last week, Illinois Governor J.B. Pritzker announced plans to support legislation initially erasing $1 billion in medical debt, but it would only cost $10 million of taxpayers’ money.

Illinois Republican lawmaker Kevin Schmidt, who represents parts of the Metro East, joined Governor Pritzker Monday in Belleville as he touted legislation reforming health insurance. Schmidt supports Pritzker’s efforts to erase medical debt. Schmidt said the proposed legislation gives medical providers the opportunity to earn part of the debt they most likely would have never received.

Illinois lawmakers still need to vote on this legislation.