RALEIGH, N.C. (October 13, 2025) — In a groundbreaking announcement, Governor Josh Stein and North Carolina Health and Human Services Secretary Dev Sangvai revealed that over $6.5 billion in medical debt has been forgiven in the past year as part of the Medical Debt Relief Program. The program, aimed at alleviating the financial burden on state residents, has impacted more than 2.5 million people, offering them a chance at financial relief and a healthier future.
What Happened: A Major Milestone in Medical Debt Relief
The Medical Debt Relief Program has been a monumental effort to reduce the burden of medical debt in North Carolina. Launched as part of an initiative to provide support to individuals struggling with outstanding medical bills, the program targets debt that dates back to 2014. The program works by incentivizing hospitals to forgive medical debt in exchange for federal funding.
Governor Stein celebrated the achievement, saying, “This is lifechanging news for so many families. Over the past year, more than 2.5 million North Carolinians have had approximately $6.5 billion in medical debt completely erased.”
The program’s positive impact has been felt across the state, with residents receiving letters from hospitals confirming their debt forgiveness. In addition, Undue Medical Debt, a nonprofit group working alongside the state, is sending out thousands of letters to inform people that their medical debt has been relieved.
Who Was Affected: A Life-Changing Relief for North Carolinians
The debt relief program has brought immense relief to families struggling to pay off medical bills that have accumulated due to unforeseen health crises. Dev Sangvai, Secretary of the North Carolina Department of Health and Human Services, spoke to the importance of the program, highlighting that many people forgo care due to concerns about the financial burden of medical debt.
“Countless times, I’ve worked with patients who have foregone care because they worried they’d be asked to pay their debt if they went to the hospital,” Sangvai said. The relief has not only helped patients but has also helped hospitals and healthcare providers by ensuring that patients are better informed and supported in avoiding severe financial burdens.
What’s Next: Keeping the Momentum Going
The Medical Debt Relief Program is a critical step forward in improving the financial well-being and health of North Carolina residents. However, advocates, including Jose Penabad from Undue Medical Debt, acknowledge that there is still more work to be done. “If you are unfortunate enough to find yourself burdened with this medical debt, it is because a number of already horrible things have happened to you,” Penabad said, emphasizing the need for continued efforts to help those affected by medical debt.
Governor Stein also urged the North Carolina General Assembly to continue funding efforts like Medicaid, which could further expand healthcare access and financial relief for state residents. He called on lawmakers to support these initiatives to help more people find financial stability.
Public and Social Media Reactions: Relief and Gratitude
The announcement has been met with overwhelming support from the community and public health advocates. Social media users have expressed relief and gratitude for the significant step taken to reduce the burden of medical debt, with many thanking the state government and healthcare providers for their role in helping people regain financial security.
“Medical debt is a tremendous weight keeping so many families from financial security,” Stein stated, adding, “Today’s announcement will free people from financial stress so they can focus on getting healthy.”
What Happens Next: Continuing to Support North Carolina Families
As the program continues, over 255,000 letters are being sent out to inform residents about the status of their medical debt forgiveness. The state will continue to offer this crucial support, with more notifications to follow in the coming months. The initiative marks a significant move towards improving public health outcomes and reducing financial inequalities within the healthcare system.
Conclusion
This announcement brings much-needed relief to families across North Carolina struggling with medical debt. The Medical Debt Relief Program has already helped millions, offering a pathway to financial recovery and better health. The ongoing efforts to continue providing support to residents will hopefully pave the way for a future where healthcare is accessible to all without the burden of overwhelming debt.
This story may be updated as more information becomes available.
