Earlier this month, North Carolina Governor Josh Stein joined a roundtable discussion in Greensboro to highlight the state’s transformative Medical Debt Relief Program. The initiative has helped more than 2.5 million North Carolinians, wiping out over $6.5 billion in medical debt.
It’s been a game-changer for millions of North Carolina families who were suffocating under a crushing financial nightmare.
“Having this debt can be a real psychological burden,” said Stein during the roundtable. “Some people feel shame for not paying what they think they owe, even though nobody asks to get sick. It should be about trying to make it easier for people to have more opportunities to thrive.”
The program, a collaborative effort between the state health department, dozens of hospitals, and the nonprofit Undue Medical Debt, does more than just correct a balance sheet. It actively prevents future debt accumulation, showcasing a proactive approach to public welfare – one where the government steps in to give families hit with unexpected hardship a chance to thrive.
Launched by former Governor Roy Cooper, this first-of-its-kind program demonstrates government at its best by identifying a systemic problem and gathering resources and community members to solve it.
As the Trump administration blocks state policies that would prevent the reporting of medical debt to credit reporting agencies and the NC General Assembly refuses to fully fund Medicaid, Governor Stein emphasized the program’s importance as a countermeasure.
“I have written to the three credit reporting agencies urging them to agree with North Carolina’s program, which is that when this debt has been relieved by the hospitals, they should take it off the credit report so it doesn’t hold people back,” Stein said.
According to WECT, North Carolinians eligible for the program include:
- All Medicaid enrollees who were enrolled on July 1, 2025, will have all outstanding medical debt dating back to January 1, 2014, that is owed to participating hospitals relieved.
- Others not enrolled in Medicaid with incomes at or below 350% of the Federal Poverty Level or with medical debt owed to a participating hospital exceeding 5% of their income will have all medical debt that is more than two years old, dating back to January 1, 2014, relieved.
You can find a list of participating hospitals on the NCDHHS site here.
