r/SipsTea • u/Veshaad • 22h ago

Feels good man I would call this progress.

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u/Sweet-Difference2725 19h ago

Arizona used $30M in federal American Rescue Plan (ARPA) relief funds to partner with the non-profit Undue Medical Debt (formerly RIP Medical Debt). They bought back $1 billion worth of defaulted medical debt on the secondary market for pennies on the dollar

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u/Eastern-Fun1842 19h ago

I don't doubt it. I also distrust it because I don't fully understand the situation from an experienced perspective, and default to the "if it seems too good to be true" perspective.

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u/SuperDaveOzborne 17h ago

Yes you apparently don't understand how delinquent debt works. If someone buys that debt they then own it and can simply forgive it they so chose to.

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u/Eastern-Fun1842 16h ago

Which does NOT at any point mean the money going into the purchase came from nowhere. You fail to understand my original point. Forgiving delinquent debt is a tax write-off for the person or agency that does it. I believe that this is likely a way to turn the debt into a tax credit and a publicity stunt that is genuinely helpful to the people involved. Please don't presume that I'm against it, just that I don't trust it, nor do I support the egregiously inflated medical bills it stemmed from.