West Cook News

Loyola Medicine, Cook County and Undue Medical Debt Partner to Abolish More than $112 Million in Medical Debt

Jul 1, 2024

(MAYWOOD, IL) – Loyola Medicine, Undue Medical Debt, a national non-profit organization, and Cook County’s Medical Debt Relief Initiative (MDRI), have entered into an agreement to eliminate $112.12 million worth of non-Medicare/Medicaid medical debt for Loyola's patients in 2024.

In alignment with its Catholic Jesuit tradition, Loyola is dedicated to providing healthcare services to all patients. With a commitment to patients and communities, Loyola has partnered with Undue Medical Debt to review and acquire accounts for erasure that are over two years old. Eligible individuals include those making at or below 400% of the federal poverty level or whose medical debt exceeds five percent of their annual household income. More than 60,000 Loyola patients qualified for this relief. Envelopes branded by Undue Medical Debt will be sent to those benefiting from this initiative.

Cook County's MDRI played a significant role in this partnership, with over 44,000 beneficiaries receiving nearly $80.5 million in medical debt relief through the collaboration with Loyola. Since its inception in 2022, Cook County's MDRI has abolished over $382 million in medical debt for more than 213,000 residents.

“Cook County is committed to alleviating the burden of medical debt on our residents,” said Cook County Board President Toni Preckwinkle. “Through the Medical Debt Relief Initiative, we have been able to provide substantial financial relief to over 213,000 individuals, including more than 44,000 through our partnership with Loyola Medicine. Today represents a critical step in our ongoing efforts to promote economic stability and health equity across Cook County communities.”

Undue Medical Debt acquires medical debts from financially burdened individuals and then abolishes them. This relief cannot be requested but is source-based; thus, it applies only to past-due accounts from provider partners like Loyola Medicine. The criteria for relief include having an individual or family income not exceeding four times the federal poverty level or having medical debt that constitutes five percent or more of one’s gross annual income.

Loyola does not sell medical debt nor reports it to credit bureaus or sends accounts to collections. It is committed to working with patients towards sustainable health coverage through its financial counseling team.

In 2024, the federal poverty guideline stands at $15,060 annually for an individual plus $5,380 for each additional family member.

“Working directly with providers like Loyola Medicine is an amazing win-win-win scenario,” said Allison Sesso, President and CEO of Undue Medical Debt. “Our valued hospital partner is compensated for some of the care it provided (without having to sell accounts to a debt collector), patients are relieved of the financial and emotional burden of debt they can’t pay, and communities are uplifted as a result.”

"Our unwavering commitment to care for the whole person - body, mind and spirit - drives us," stated Shawn Vincent, President and CEO of Loyola Medicine. "We understand that medical debt can be a daunting challenge for our patients. Our partnership with Undue and Cook County’s MDRI empowers us to relieve our patients' medical debt while simultaneously recovering a portion of that debt."

Details:

- Undue purchased 60,900 past-due accounts from Loyola Medicine totaling $112.12 million.

- These accounts belong predominantly to those least able to pay.

- The top five counties where medical debt is being abolished are: Cook, DuPage, Will, Lake and Kane.

- Recipients will be notified by letter starting July 1.

- This relief does not apply to debts owed outside of Loyola Medicine.

Despite high rates of health insurance coverage nationally (over 90%), Americans owe over $195 billion in medical debt. Unpayable medical bills remain the leading cause of bankruptcy.

About Loyola Medicine

Loyola Medicine includes three hospitals: Loyola University Medical Center (Maywood), Gottlieb Memorial Hospital (Melrose Park), MacNeal Hospital (Berwyn). It offers primary care through nearly 2,000 physicians across multiple counties.

About Trinity Health

Trinity Health operates across 27 states with numerous healthcare facilities including hospitals and urgent care locations.

About Cook County

Cook County represents approximately 5.2 million residents in Illinois under the leadership of the Cook County Board President.

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