Two New York women helped erase $1.5 million medical debt in just four months. Their campaign gave 1,284 strangers a financial lifeline

For 1,284 people in New York, an unexpected letter inside a slim yellow envelope brought news that could make a big difference to their financial lives. Their overdue medical bills had been forgiven, thanks to a fundraising campaign led by two women who wanted to bring attention to the burden of healthcare costs.

Judith Jones, 80, and Carolyn Kenyon, 70, raised $12,500 over the summer of 2018. The money helped R.I.P. Medical Debt, a nonprofit organisation, purchase and cancel $1.5 million in medical debt for people they had never even met.

The initiative showed how just a relatively modest donation could provide relief worth many times the amount raised, while highlighting a problem that affects people even when they have health insurance.

How $12,500 erased $1.5 million in medical bills

Jones and Kenyon donated the money to R.I.P. Medical Debt, which buys portfolios of overdue medical bills at heavily discounted prices and then forgives them.

According to SELF, the organisation acquired the $1.5 million in debt for approximately half a cent on the dollar. Rather than collecting the money from the people who owed it, the charity cancelled the obligations and sent letters informing recipients that their debts had been erased.

The nonprofit was founded in 2014 by Craig Antico and Jerry Ashton, both former debt collection executives. They established the organisation after recognising the hardship caused by unpaid medical bills.

“I like doing this much more than I liked doing collecting,” Antico told The New York Times. “The random act of kindness is kind of a cool thing.”

Why the two women wanted to help

Jones was involved with the Finger Lakes chapter of the Campaign for New York Health, which advocates universal health coverage through the proposed New York Health Act.

While searching online, she came across R.I.P. Medical Debt and saw an opportunity to raise awareness about medical debt in her community. She joined forces with Kenyon, and their fundraising campaign gathered momentum over the summer of 2018.

“One of the outcomes of that act is that it will end medical debt,” Jones told SELF. “Medical debt is an enormous problem across the country.”

Kenyon said the widespread worry over healthcare expenses helped explain the attention their initiative received.

“Anxiety about being able to afford health care seems to be epidemic,” she told the magazine.

Jones hoped the debt forgiveness would help recipients regain some financial stability.

“These people may now have their credit report repaired enough to rent a home,” she told SELF. “Sometimes it can make a difference in whether they’re hired for a job. We hope that this will help improve their ability to live a successful life.”