Ohio Democratic candidate proposes medical debt forgiveness plan

Ohio’s Democratic candidate for governor has made medical debt forgiveness a central part of her campaign ahead of the November general election. The candidate, a preventive medicine specialist and former state public health leader, has said she would follow models used in other Democratic-led states if elected.

She has described the proposal during a May 6 local news interview, citing a family with $300,000 in medical debt after newborn twins required NICU care.

Residents earning at or below 400 percent of the federal poverty level, or $128,600 for a family of four, or those whose debt exceeds 5 percent of household income would qualify. She said further details would be released after taking office. She referenced Illinois, where state officials spent $10 million to address up to $1 billion in medical debt through a partnership with the nonprofit Undue Medical Debt.

Similar efforts have occurred in Michigan and New Jersey.

Existing state actions Several Ohio cities have already settled portions of residents’ medical debt. Toledo used $1.6 million in federal COVID-19 relief funds to erase more than $230 million in debt. Cleveland spent $1.9 million to cover $181 million in debt.

A bipartisan bill introduced last year in the Ohio House would cap medical debt interest at 3 percent annually, bar reporting of such debt to credit agencies, and prohibit wage garnishment for collections.

Additional proposals The candidate’s platform also includes launching an online platform called Ohio Rx to negotiate lower prescription drug prices using the state’s Medicaid purchasing power. She has said she would advance legislation requiring health insurance plans to count out-of-pocket medication costs toward deductibles.