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Medical debt is a major problem for American families. According to CBS, it's responsible for more than half of U.S. debt collections and half of the bankruptcy filings.
Recently, a church in Wyoming, Michigan, took action to help families in need. In partnership with the non-profit group RIP Medical Debt, many families can have a fresh start. And this is far from the only time something like this has happened.
Nearly 2,000 families selected in Michigan
Grand Rapids First is a Pentecostal church affiliated with Assemblies of God. And it has just taken significant steps towards wiping out the medical debts of others.
The church has made a $15,000 donation to the organization RIP Medical Debt. RIP Medical Debt purchases medical debt on the secondary market for pennies on the dollar. Upon purchase, the organization forgives the debt with no strings attached. In addition, recipients don't have to claim the act as taxable income.
RIP Medical Debt used the donation to acquire and forgive the debts of almost 2,000 Michigan families. The total amount of money that had been owed surpassed $1.8 million.
As the Detroit Free Press reports, RIP Medical Debt cannot reveal the identities of the families. Medical privacy laws forbid it. But the counties that the recipients reside in have been announced. Those being Kent, Ottawa, Allegan and Ionia counties.
Recipients are to find out the news via a letter in the mail.
To be eligible for selection, potential recipients must earn less than double the federal poverty level in a year. That amounts to approximately $50,000.
Other churches have made similar donations
In 2018, a non-denominational Christian church in Texas made the news.
The church was Covenant Church in Carrollton. In celebration of Easter, the church made an ambitious move. Covenant Church would donate $100,000 to RIP Medical Debt.
As a result, more than 4,200 families in the region had the medical debts wiped clean. The amount of money forgiven exceeded $10.5 million. Reportedly, this was largely this inspiration for Grand Rapids First to make their donation.
But they weren't the only ones who were inspired by Covenant Church's actions.
Revolution Annapolis is a mobile non-denominational Christian church in Annapolis, Maryland. The church made a $15,000 donation to RIP Medical Debt. In return, medical debts were erased for approximately 900 recipients in 14 Maryland counties. Revolution Annapolis was also apparently inspired by Covenant Church.
And it doesn't stop there. Churches in various states around the country have helped remove the burden of medical debt. They include but aren't limited to, ones in Kansas, Illinois, Virginia, and Indiana.
