Less than a penny on the dollar

A reader in Bloomington, Indiana, shares the true story of Judith Jones, 80, and Carolyn Kenyon, 70, who live in Ithaca, New York. They know how medical debt caused by high health care costs can wreck people's lives. So they raised $12,500 during the summer and donated it to a charity called RIP Medical Debt. The charity was started four years ago by former debt collectors Craig Antico and Jerry Ashton. It is able to buy up overdue medical debt for less than a penny on the dollar.

RIP Medical Debt accepted the ladies donation of 12,500 and used it to erase $1.5 million in medical debt. 1,284 people whose debt was erased will receive a slim, yellow envelope with a letter telling them their debt is forgiven. In total, RIP Medical Debt has erased $434 million in past-due medical debt so far, although America's total tab is about $750 BILLION.