Austin Church Erases $14 Million in Medical Debt for 10,865 People

Covenant Presbyterian Church in North Austin has taken a significant step in addressing medical debt by helping erase $14 million in debt for 10,865 individuals. This initiative was made possible through a $75,000 donation from the church to the nonprofit Undue Medical Debt. Recipients received letters informing them that their medical debt had been resolved without any action required on their part.

The church’s decision to allocate its budget surplus toward this cause reflects a commitment to community service. At the end of last year, Covenant Presbyterian Church had a $200,000 surplus in its $5.47 million budget, which already included $1.1 million for charity work. Instead of using the surplus for other purposes, the church’s elders directed it to the Mission Committee to explore ways to serve the community.

Whitney Bell, the mission director, noted the generosity of the church’s members. The elders instructed the committee to “use this to love and serve this community,” emphasizing the church’s dedication to practical outreach and mercy.

Undue Medical Debt, a national nonprofit, plays a crucial role in this effort. The organization purchases medical debt in bulk from various healthcare providers and collections services. By leveraging scale and technology, Undue can acquire debt at a fraction of its value, enabling significant relief for those in need. This approach benefits both the debt holders and the organizations that sell the debt, as it allows for efficient resolution without prolonged collection efforts.

The Rev. Jill Williams, who leads Covenant Presbyterian Church, highlighted the church’s focus on community impact. The initiative aligns with the church’s mission to address real-world needs through tangible acts of service.

Undue Medical Debt prioritizes individuals facing financial hardship, paying off debt for those earning less than 400% of the federal poverty level. For those earning more, the organization considers the proportion of debt relative to income. This targeted approach ensures that resources are directed where they are most needed.

By collaborating with Undue Medical Debt, Covenant Presbyterian Church identified areas within Travis County with the highest demand for assistance. This strategic partnership exemplifies how faith-based organizations can leverage their resources to address systemic issues and provide meaningful relief to vulnerable populations.

Source: Read the original report