When it comes to helping Americans manage rising health care costs, one increasingly popular policy stands out for both its simplicity and potential payoff: Buy up vast amounts of medical debt for pennies on the dollar and cancel it, thereby giving struggling families a break from one major stressor.
Over the last two years, 15 state or local governments passed programs to acquire about $8 billion worth of medical fees that have either been — or are about to be — sent to bill collectors. Five others are considering programs that would raise that total to nearly $13 billion.
It’s not just governments that think medical debt relief holds promise: Private donors are financing the purchase of outstanding medical debts worth billions of…
