Today, Health and Human Services Secretary Dev Sangvai announced that North Carolina’s Medical Debt Relief Program has erased more than $6.5 billion in medical debt for 2.5 million residents.
Sangvai said the total far surpasses early projections made when the initiative launched in July 2024. The figure includes debt cleared directly through the program and additional balances forgiven as hospitals updated policies.
“Medical debt delays access to care and easing debt is a pivotal step forward to improving the health and well-being of those who carry the emotional stress and financial weight of high costs for medical care.” said Sangvai in a press release. “We are grateful to the hospitals and providers who are helping to give a fresh start to millions of North Carolinians.”
Hospitals across the state have begun notifying patients their medical debt has been wiped out. The nonprofit Undue Medical Debt is also mailing more than 255,000 letters confirming additional relief.
Every eligible acute care hospital in North Carolina joined the program last August. To qualify for enhanced federal payments under the Healthcare Access and Stabilization Program (HASP), hospitals agreed to relieve debt for low- and middle-income patients, expand charity care, and stop reporting medical debt to credit agencies.
Neither Medicaid expansion nor HASP required new state funding. Officials say the initiative not only clears old debt but also limits new debt through stronger financial-assistance policies—marking a major step toward statewide health-care affordability and fairness.
For more information about eligibility and questions about the program, see the organization’s Frequently Asked Questions wbsite here.
