AUSTIN, Texas - An Austin-based tech company has paid off medical debts for more than 700 families in Travis County.
Momentum Factor purchased more than $1.8 million worth of Austin-area medical debt currently in collections through a national charitable debt purchasing organization.
In the next few weeks, the families will receive notices in the mail that their medical debt has been forgiven. The notices will arrive in yellow envelopes stamped with the words "Your medical debt has been forgiven through a charitable donation from an Austin-area donor."
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“A family oppressed by medical debt is not only dealing with financial issues but health issues as well,” said Momentum Factor CEO Jonathan Gilliam. “With the COVID-19 outbreaks spreading across the country this will only get worse. Our goal was to clear as much existing debt for Austin-area residents as we could.”
Inside the notices will be a letter with information on the recipient’s outstanding medical debt relieved by Momentum Factor’s effort. The tech firm says RIP Medical Debt purchases the most burdensome medical debt available in large, bundled portfolios.
“Medical debt is especially vicious as people are already hurting, quite often literally, when the debt collectors come after them,” Gilliam said. "Add in the pandemic-induced healthcare crisis and for many families, this is truly a catastrophe."
According to the tech firm, nearly one-fifth of all Travis County residents owe medical debt that's in collections.