St. Paul is eliminating over $40 million in medical debt for 32,000 residents through Mayor Melvin Carter’s Medical Debt Reset Initiative. Partnering with Fairview Health and non-profit Undue Medical Debt, the city is using $1.1 million from the American Rescue Plan to erase $110 million in debt over time.
Undue Medical Debt’s model converts $1 into $100 of relief. The average erased debt was $268, with some balances reaching $104,972. Qualifying residents will receive confirmation letters.
Mayor Carter called medical debt a barrier to health, and Fairview Health President James Hereford praised the partnership for reducing costs and improving outcomes.
Medical debt affects 54% of insured adults. Undue Medical Debt hopes this effort will inspire systemic reforms to address the root causes of healthcare debt.
