CA Foundation Alleviates Over $3.3 Million in Medical Debt for Minnesotans Through RIP Medical Debt

The donation will help pay the medical expenses of about 3,788 Minnesotans who earn four times or below the federal poverty level and/or have debts that are 5% or more of their annual income

FERGUS FALLS, Minn. , July 25, 2023 /PRNewswire/ -- The CA Foundation (CAF) is excited to announce its recent donation to RIP Medical Debt, specifically targeting over $3.3 million in medical debt carried by Minnesotans. The state-specific donation allows RIP Medical Debt, a national non-profit, to pay off health care debt by purchasing past due accounts from collection agencies and medical providers. RIP receives donations from individuals, philanthropists, government and organizations.  For this collaboration, RIP will negotiate acquiring qualifying medical debts from Minnesota medical providers and secondary debt partners, granting millions in debt relief to state residents in need.

Medical debt abolishment cannot be requested and is source-based, meaning RIP can only purchase and relieve debts it has access to from providers and collection agencies. Minnesotans can expect RIP Medical Debt branded envelopes to arrive the week of August 7, alerting select residents that some or all of their medical debt is gone.

Jeff Smedsrud is managing director of CAF and also serves as a board member and head of development for RIP Medical Debt.  He is a long-time health care reform advocate that champions ways to lower the number of uninsured individuals and reduce the burden of unnecessary and confusing medical bills.

"As of 2022, about 2% of Minnesotans had medical debt, and the number doubles in communities of color. Medical debt keeps people from renting homes, buying a car, or seeking out medical care when they need it most. One of our goals as a Minnesota foundation is to focus on advocating for health care access in the state and help other organizations lift people out of debt when there are no other alternatives," said Smedsrud.

Founded in 1981, CAF is a charitable organization committed to helping individuals who purchase their own health insurance find affordable health care options and navigate the health care system to avoid surprise medical charges and keep costs down. It operates one of the nation's largest international agricultural exchange programs that brings more than 1,000 people each year to the US for temporary training and intern programs.

RIP Medical Debt was established in 2014, and 100% of individual campaign donations go towards its debt abolishment program. Working with third-party credit data providers, RIP locates portfolio accounts meeting its criteria for financial relief. RIP then negotiates to buy the portfolios at a steep discount. Since its inception, RIP Medical Debt has abolished more than $9.5 billion in medical bills nationwide and helped over 6,370,000 individuals restore their credit scores and improve their access to health care. Any medical debt erasure is considered an act of generosity, and the debt does not count as income to the debtor, allowing individuals to simply benefit from the elimination of their medical bill(s).

"It's more and more common for people to acquire medical debt as health care costs rise and high-deductible health plans leave patients on the hook for amounts they simply cannot pay," said Allison Sesso, president and CEO of RIP Medical Debt. "With over 90% of the nation insured, we're increasingly seeing co-pays and deductibles turning into medical debt, which can impact credit scores and create mental and financial distress. RIP Medical Debt, and our generous partners, help those most financially burdened get back on their feet and seek the necessary care they need."

Smedsrud noted that his goal is to help make Minnesota the first 'medical-debt-free state.'

About The CA Foundation
The Communicating for Agriculture Scholarship & Education Foundation was founded in 1981 as a 501(c)(3) charitable foundation. It has invested in America's communities by donating to health care, education, military veteran organizations, social service communities and medical debt forgiveness.

SOURCE Communicating for America