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Address Medical Debt in Arkansas: A Call to Action

2 min read

Medical debt can be erased for mere pennies on the dollar, and with the right policies in place, Arkansas can lead the nation in addressing this pressing issue.

In 2022, the Arkansas Community Foundation, the Winthrop Rockefeller Foundation, the HOPE Community Credit Union, and other generous donors raised $225,000 to eliminate a staggering $35 million in medical debt. This initiative brought relief to 23,896 Arkansans across all 75 counties.

Medical debt is not just a number; it’s a barrier that prevents over half a million ALICE Arkansans (Asset Limited, Income Constrained, Employed) from thriving. Alarmingly, a significant portion of these debt-burdened individuals work in the very sector that should be alleviating their woes – the medical field.

The statistics are daunting: 37% of Arkansans grapple with some form of debt, surpassing the national average of 29%. Sevier County, located in southwest Arkansas, has the highest proportion of medical debt in collections, standing at 31%.

So, the question is, what can you do?

  • Legislation and Policy Reforms: It’s imperative to introduce comprehensive laws that shield consumers from unexpected out-of-network medical bills. As we navigate the aftermath of the COVID-19 pandemic, medical debt elimination must be at the forefront of recovery plans.
  • Hospital Initiatives: Hospitals should be encouraged to expand their financial assistance programs. Regulations should ensure that information about these programs is conspicuously displayed, and staff should be well-trained to guide patients about these benefits.
  • Consumer Protections: The state should enforce stringent protections against aggressive medical debt collection practices. This includes limiting the reporting of medical debt to credit agencies and capping the interest that can be levied on such debts.
  • Alternative Payment Solutions: Instead of resorting to collection agencies or legal avenues for unpaid bills, hospitals should consider offering patients flexible payment plans or other feasible options.

There are many benefits to addressing the medical debt crisis:

  • Economic Boost: Alleviating medical debt will spur consumer spending, driving demand for goods and services and propelling economic growth.
  • Improved Creditworthiness: By reducing medical debt, we can enhance credit scores, facilitating easier access to loans and credit for Arkansans.
  • Reduced Bankruptcies: Tackling the root cause of many personal bankruptcies will bolster consumer confidence and credit availability.
  • Enhanced Productivity: A healthier, debt-free populace means fewer sick days and higher workplace productivity.
  • Increased Entrepreneurship: With the shadow of debt lifted, more individuals will venture into starting their own businesses, fostering innovation.
  • Robust Housing Market: Without the burden of medical debt, more Arkansans will invest in homes, invigorating the housing sector.

The call to action is clear. Hospitals, businesses, policymakers, and philanthropy must come together to address the medical debt crisis. By doing so, we uplift thousands of Arkansans and set a precedent for the nation.


Are you ready to #StandUpForALICE by helping to reduce medical debt? Leave us a note at https://aliceinar.org/join-the-movement/ to join the movement for a thriving Arkansas where hard work works for all!
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