After her husband of 44 years passed away two years ago due to Covid-19-related respiratory complications, Susan believed she could start grieving the loss of her closest friend. She was informed that she didn’t need to worry about the expenses incurred by her husband’s medical care before his death. Medicaid allegedly covered all the costs. Susan, a resident of Springfield, Ohio, who prefers to remain unidentified due to her legal issues, says that Medicaid cleared everything. However, her lawyer then informed her that she needed to pay back the Medicaid bill.
Susan is one of around 100 million Americans who owe an estimated $220bn in medical debt. Despite the financial burden, Susan and her family have been plunged into a state of limbo for two years, unable to secure proper healthcare or purchase essentials like cars or houses. This plight is not unique to Susan, as millions of low-income Americans are trapped in a cycle of medical debt that keeps them in poverty for generations. However, there is a glimmer of hope in south-west Ohio thanks to a campaign run by local activists and medical centers. They are partnering with Undue Medical Debt, a nonprofit organization based in Boston, to raise funds to clear long-standing medical debt for thousands of locals. Clark County, where Susan resides, is among the areas with the highest medical debt rates in the country, with about 13,000 individuals owing over $22m. This debt can be purchased from debt collection agencies at a price of $1 for every $178 of debt.
In Ohio, the project led by a local non-profit called the Collaboratory aims to raise over $127,000 in donations. Peter Benkendorf, a member of the Collaboratory, states that Clark County accounts for 40% of the region’s medical debt, despite its low population. This highlights the disproportionate impact medical debt has on rural counties, where access to jobs and healthcare is limited.
Susan is one of the three million Americans with more than $10,000 in medical debt. She cannot pay her husband’s medical expenses until his estate is settled, which involves selling her home of 40 years. However, Medicaid’s estate recovery process places a lien on her property. This process is particularly aggressive in Ohio and operates under a vague legal framework. Ohio lawmakers are currently considering introducing a law that would require clear notifications of repayment requirements as part of any Medicaid application.
Medical debt is the leading cause of bankruptcy in the United States, a problem exacerbated by the fact that even variables such as healthcare spending per capita differ greatly across the country. Despite the emergence of efforts to combat medical debt, such as the purchasing of debt by cities and non-profits, the problem continues to persist.
Source: https://www.theguardian.com/us-news/2025/mar/07/ohio-medical-debt-repayment-non-profits
