Medical debt is one of the fastest growing categories of debt in this country. Next to student loans, medical debt is ballooning at a record pace. It’s often medical emergencies that throw more people into debt and it’s often involuntary. Something happens and the costs of medical care are so astronomical that most people cannot afford to pay it off.
Bernie Sanders has been outspoken about helping Americans get rid of their debt. He’s famous for making promises to wipe out student debt. He’s now on the bandwagon for forgiving nearly $81 billion in overdue medical debt. This is a major step beyond anything any of his Democratic rivals have proposed. The furthest anyone else would go is wanting a completely government-run health care and insurance system.
“In America today, it is unacceptable that one out of every six Americans have past-due medical bills on their credit report, totaling $81 billion,” Sen. Sanders, I-Vt., said in a statement, adding: “It is immoral and unconscionable that families across the country are being evicted, having their heat disconnected, or having their already-inadequate wages garnished because of crippling medical debt while the health care industry made more than $100 billion in profits last year.”
Paying Off Medical Debt
People with medical debt are often the most vulnerable. They’ve had a horrible accident or contracted a disease. They have no choice but to seek medical care they know they cannot afford. When that happens, the person also loses out on valuable time at work. If they receive any money at all, it’s less than their usual salary. Throw in tons of medical debt, it’s a recipe for disaster.
Sanders wants the government to step in and help people negotiate down their debts. After the negotiation is completed, they will effectively pay off the debt. That includes any collection agency the debt has been referred to. It would also remove the debt from their credit score and allow people a chance to not be buried any further.
In announcing this new plan, Sanders didn’t say how he would get the money to pay the $81 billion. Like his plan to wipe out $1.53 trillion in student debt, many wonder how he’ll afford any of his promises. He also wants to make college free and offer free healthcare to every American. It seems as if the campaign that offers the most free stuff is likely to win the Democratic nomination.
Sanders acknowledged that $81 billion is “a lot of money,” but he added, “Compared to what? Compared to the $1.5 trillion that Trump gave in tax breaks to the one percent and large corporations. Compared to the billions of dollars that we spent bailing out the crooks on Wall Street 11 years ago. It is a lot of money but I think it’s the right thing to do.”
