Group To Wipe Out $3.3 Million In Medical Debt For Minnesota Residents

FERGUS FALLS, MN — A Fergus Falls-based organization announced Tuesday that it plans to wipe away $3.3 million in medical debt carried by Minnesotans.

The Communicating for Agriculture Foundation (CAF) is making it happen through a Minnesota-targeted donation to RIP Medical Debt.

A national organization, RIP Medical Debt buys debt in discounted bundles, millions of dollars at a time at a fraction of the original cost. As a result, any donation to RIP Medical Debt relieves about 100 times its value in medical debt, according to the group.

Selected Minnesotans can expect envelopes from RIP Medical Debt to arrive the week of Aug. 7, letting them know that some or all of their medical debt is now gone.

"As of 2022, about two percent of Minnesotans had medical debt, and the number doubles in communities of color," said Jeff Smedsrud, managing director of CAF and a board member for RIP Medical Debt.

"Medical debt keeps people from renting homes, buying a car, or seeking out medical care when they need it most."

Smedsrud said his goal is to help make Minnesota the first "medical-debt-free state."

Founded in 1981, the CAF is a charitable organization aiming to help find affordable healthcare options.