EarnIn abolished $22 million in medical debt in Phoenix, Las Vegas and San Antonio

Whether or not you're insured, it only takes one emergency to send you into medical debt in the U.S. — and as Americans' savings continue to take a beating from inflation, paying off these sums can feel insurmountable. 

But for residents in in San Antonio, Phoenix or Las Vegas, there might be some relief.

Financial services company EarnIn and national non-profit RIP Medical Debt have teamed up to abolish $22 million in medical debt across three counties in Texas, Arizona and Nevada. The duo started by alleviating $13.9 million worth of medical debt in Bexar County, Texas, home to San Antonio, before canceling $5.4 million of debt in Maricopa County, Arizona. Last week they rounded out their mission by giving $2.7 million to Clark County, Nevada residents. 

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The relief comes in the form of a letter in the mail from RIP Medical Debt, informing the resident that their debt has been voided. Recipients will likely be those who earn four times or below the federal poverty level of $13,590 a year, or those whose medical debt is worth 5% or more of their annual income. Anyone who receives a letter should hold onto it for personal record-keeping in case a debt collector comes poking around — beyond that, there's no catch or hidden administrative burden placed on the debtor, explains Brittanie Williams, chief marketing officer at EarnIn. 

"It's possible for someone who has never even heard of us to receive this benefit," she says. "Our mission is to provide financial momentum to everyone so that your money moves at the speed of your life, and medical debt is a huge problem." 

EarnIn is an employer benefit that specializes in allowing workers unrestricted access to their earned wages in between traditional paydays. Williams underlines the importance of EarnIn serving communities that reflect their customer base, not just their actual customers. So EarnIn pinpointed counties where residents held the most medical debt in the country, noting that their debt may be the result or consequence of living paycheck-to-paycheck. Bexar County, for example, holds the third largest amount of medical debt in the country. Clark County ranks at number four, and Maricopa County comes in at number five. 

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"We wanted to look for places where we knew we could make the largest impact," says Williams. "We see how medical debt impacts our customers, and how it can be so damaging."

Medical debt affects 100 million Americans, totaling approximately $195 billion, according to KFF. It's the number one cause of bankruptcy in the U.S. Williams underlines that the debt itself can be psychologically damaging, making people feel like they can't plan for the future because they're stuck trying to pay off debt. A survey by RIP Medical Debt found that 60% of respondents with medical debt reported negative impacts on their mental health, while 55% of respondents deferred care because of medical debt. Americans are putting their futures at risk mentally and physically, emphasizes Williams. 

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While $22 million in the face of $195 billion worth of debt may feel like a drop in the bucket, Williams is confident EarnIn and RIP Medical Debt changed lives this year. Williams notes that EarnIn is planning similar projects around financial flexibility and freedom in the future.

"It can be really discouraging when you don't have the money to pay your bills," she says. "To have the option to feel more control — that can be incredibly motivating."