RIP Medical Debt helps poor Americans eliminate medical bills

A concept that was popularized by MLK Jr., guaranteed basic income, will be launching in his hometown of Atlanta. Monthly cash payments have proven to be beneficial to recipients in a number of pilot programs across the world. Qualifying recipients have seen increased employment opportunities, better health outcomes, and the ability to avoid predatory debt.

A guaranteed income program is giving people the financial security to invest in themselves, avoid predatory loans, pay off debt, and improve their general quality of life. The lack of conditions on how the monthly cash payments should be utilized gives recipients the freedom to do what they need with the money.

Four local organizations have teamed up to provide $15 million in loans for the Latinx community in the Kensington neighborhood of Philadelphia. The affordable loans have gone to affordable housing, small businesses, residential mortgages, and development projects.

Beneficiaries of a guaranteed income program in Mississippi have received monthly cash payments that they are free to spend however they need to. Known as Magnolia Mothers, the program has allowed mothers to pay off debt, invest in business, avoid predatory loans, and consider educational opportunities that can help increase their income and quality of life.

A guaranteed income pilot program in Stockton increased full-time employment rates among recipients. Cash payments improved mental health and gave participants the stability, bandwidth, and time to apply and interview for jobs.

A pilot project provided residents who made less than the median income in Stockton, California, with monthly cash payments. The extra money helped recipients secure employment, avoid housing instability, handle unexpected expenses that would otherwise derail their budgets, reduce debt, improve mental health, and help friends and family when necessary. A nationwide initiative is expanding the program to other cities as well.

Guaranteed income pilot programs have created a crucial safety net, especially for women of color who have experienced poverty disproportionately after the onset of the pandemic. The once-fringe idea has gained popularity following the federal government’s multiple stimulus checks that the majority of Americans have qualified for.

Rural hospitals across the country often struggle to stay open in states where Medicaid has not been expanded, but a method known as "swing beds" has helped two critical-access hospitals in Georgia to avoid this fate. This method, which allows hospitals to swing beds from "only patients in need of acute care to those who no longer require the emergency department but still needed more treatment before a nursing home," allowed for the hospitals to pay off debt and expand services.

Families experiencing poverty have been given $1,000 each month in an effort to address the racial wealth gap through the Magnolia Mother's Trust program. The cash payments yield an increase of recipients who were able to earn their GEDs, cook fresh meals for their families, and meet all their basic needs. The payments began prior to the onset of the pandemic but have proven to be a crucial safety net.

Universal basic income, or UBI, was implemented in Stockton, California through a pilot program known as SEED. Each participant was given $500 with no conditions on how to spend it. The data shows that the largest expense was food, especially as the pandemic began. Participants report being able to quit second jobs and third jobs, pay off debts, and cover medical bills. A key feature of the UBI was the absence of the requirement to be employed in order to receive the money. The basic-income pilot has caught the attention of programs across the country who reached out for advice.