The cities of New York and Chicago recently made news in medicine: they cancelled Billions of dollars in medical debt for their residents. The cities were not the only entities involved; the nonprofit RIP Medical Debt was in the mix, too.
In its few years of existence, RIP MD has been quietly buying up medical debt from the entities holding it, often for far less than the face value of the debt. So a $10,000 debt--this is a rough example--can be retired for a few hundred dollars. The people who owe the debt are completely off the hook.
Allison Sesso, the President & CEO of RIP Medical Debt, talked to us about the details of how it all works, and where the money comes from.