SCAN Group and CareOregon granted $345,000 to RIP Medical Debt, which will wipe out $110 million in medical debt.
According to a June 6 news release, the grant will wipe medical debt for 700,000 people in Arizona, California, Nevada and Oregon. RIP Medical Debt buys debt from hospitals in bundles, allowing them to pay a fraction of the original cost.
The debt relief will be provided to individuals with incomes at or less than 400 percent of the federal poverty line, or have medical debt that is more than 5 percent of their annual income.
"Medical debt presents a catastrophic burden on millions of vulnerable Americans and disproportionality impacts people of color, often forcing them to choose between paying off medical bills and covering their basic needs — including their healthcare needs," Sachin Jain, MD, CEO of SCAN Group and SCAN Health Plan, said in the news release.