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In a significant act of generosity, over 35,000 residents in Southwest Virginia are set to have their medical debts wiped clean, thanks to a transformative initiative by The Secular Society. This nonprofit organization recently announced the elimination of a staggering $51,348,305.70 in medical debt, providing relief to 35,007 individuals spread across 18 counties. This endeavor is heralded as the largest debt relief effort in the organization’s history.
To achieve this monumental feat, The Secular Society collaborated with Undue Medical Debt, a partner organization dedicated to acquiring and forgiving qualifying debts. This initiative marks the third time The Secular Society has undertaken such a campaign to alleviate medical debt burdens.
Unlike many relief programs, residents do not need to apply to benefit from this initiative. Eligible individuals will receive notification letters, confirming that their medical balances have been forgiven, offering them a fresh start without the weight of past financial burdens.
Eligibility for this relief was determined based on specific criteria. Individuals must earn less than four times the federal poverty level, or their medical debt must constitute at least 5% of their annual income. The program includes both uninsured and underinsured patients, ensuring broad assistance to those most in need.
To qualify, individuals must earn less than four times the federal poverty level or have medical debt equal to at least 5% of their annual income. Both uninsured and underinsured patients were included.
Rachel Helton, spokesperson for the Secular Society, said the initiative removes long-standing financial barriers.
“It is the largest in value that the Secular Society has purchased,” Helton said. “What this medical abolishment does is it cuts all strings attached with credit bureaus, medical debt hitting credit reports and it is freeing to patients financially from any system and restores access to their care and eliminates any barriers to health care access they might receive.”
Once the debt is purchased, collection efforts stop, and credit reports are updated. The forgiven debt is treated as a gift and is not considered taxable income.
According to the organization’s data, the largest number of recipients was in Washington County, where 7,479 residents had nearly $11.8 million in debt erased. Smyth County followed with 6,950 residents and $10.5 million in relief, and Wise County with 5,049 residents and $8.3 million.
Other counties impacted include Montgomery (4,111 residents, $5.84 million), Russell (2,431 residents, $3.39 million), Carroll (1,604 residents. $2.23 million) and Tazewell (1,557 residents, $2.19 million).
Additional relief reached Pulaski, Lee, Scott, Patrick, Dickenson, Wythe, Giles, Franklin, Floyd and Craig counties, along with a small number of residents in other areas.
Helton said the partnership with Undue Medical Debt allowed the organization to identify qualifying accounts using geographic and income data, ensuring the relief reached those most in need.
“The Secular Society pays for the debt, and then, undue medical debt in New York works out all of that identification of the patients with ZIP codes,” Helton said. “They’re located in how much debt exists per ZIP code, and there is a distribution, an Excel spreadsheet that shows the constituents per county and the face value of medical debt totaling that amount.”
Helton added that the goal is to alleviate the financial burden and clear recipients’ debt so they can spend their income on other necessary expenses.
“Medical debt can follow a person for many, many years,” Helton said. “It could put them back on the track for being able to buy a house, buy a car, get to work, and regain their peace of life back and dignity as well. Individuals here in Southwest Virginia will receive that letter letting them know that is something they do not need to worry about anymore.”
Recipients will receive their good news letter in the mail within the next few weeks.