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NC effort wipes out $6.5B in medical debt for 2.5M people

By Associated Press  
   October 14, 2025

More than 2.5 million North Carolina residents are getting over $6.5 billion in medical debt eliminated through a state government effort that offered hospitals extra Medicaid funds from Washington if they gave low- and middle-income patients the financial relief and implemented policies to discourage future liabilities. Democratic Gov. Josh Stein, the state health department secretary and other officials announced Monday results so far from what then-Gov. Roy Cooper unveiled 15 months ago as a first-of-its-kind initiative. While helping almost one-quarter of North Carolina residents, Stein said the effort has exceeded expectations in giving individuals and families a second chance to succeed financially after medical crises. Officials previously estimated it could help about 2 million people get rid of $4 billion in debt. The debt that had been held by hospitals, and are usually difficult to recover, will be pulled from credit reports, the governor said.

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