Hawaii Gov. Josh Green has signed Senate Bill 3025 into law, officially creating the Medical Debt Acquisition and Forgiveness Program. Administered by the Office of Wellness and Resilience within the Department of Human Services, the initiative establishes a process for eliminating qualifying medical debt for eligible Hawaii residents.Â
Under the program, the state’s contracted nonprofit partner, Undue Medical Debt, purchases portfolios of medical debt directly from health care providers and collection agencies. Eligible individuals are identified through an internal eligibility process and will receive notification by mail if their qualifying medical debt has been forgiven.Â
To qualify for relief, residents must meet at least one of the following financial criteria:Â
- Have a household income at or below 400% of the Federal Poverty Level (FPL) for Hawaii, which is approximately $140,000 annually for a family of four.Â
- Have an adjusted gross income below $100,000, with qualifying medical debt equal to at least 5% of their annual household income.Â
State officials estimate that up to 50,000 Hawaii residents could qualify for the program, with total medical debt relief reaching approximately $91 million.Â
The legislation also builds upon existing consumer protections already in place throughout the state. Hawaii law requires nonprofit hospitals and clinics to maintain charity care programs that may reduce or fully forgive medical expenses for eligible low-income patients before accounts are referred to collections.Â
Hawaii joins a growing number of states and municipalities that have implemented public-private partnerships to address medical debt. Similar statewide medical debt relief initiatives are currently in place in Pennsylvania, Connecticut, and New Jersey.Â
In addition to debt forgiveness programs, nonprofit hospitals across the country are generally required to maintain financial assistance, or charity care, policies for patients who are unable to pay for necessary medical services. Eligibility requirements and available assistance vary by provider and state. In some states, financial assistance begins at household incomes between 200% and 300% of the Federal Poverty Level, while others extend eligibility up to 400% of the FPL.Â
Oregon was the first state to require nonprofit hospitals to provide standardized charity care discounts. Under Oregon law, eligible patients with household incomes at or below 200% of the Federal Poverty Level may receive free care from nonprofit providers. Those with incomes between 200% and 400% of the FPL may qualify for discounted care, while discounts are not required for patients with incomes above 400% of the FPL.
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
