MacKenzie Scott has once again prioritized the alleviation of medical debt through her philanthropic efforts. This week, the organization Undue Medical Debt, which was previously known as RIP Medical Debt, announced that it has received a substantial third donation of $50 million from Scott. This contribution reflects Scott’s approval of the organization’s initiatives focused on buying medical debt in bulk from hospitals and collection agencies. To date, Scott has donated a remarkable total of $130 million to the charity since 2020.
Despite the majority of Americans having some form of health insurance, the prevalence of medical debt continues to rise. According to figures from a left-leaning think tank, approximately 100 million individuals in the U.S. are unable to meet their medical expenses. Current estimates indicate that Americans collectively owe around $220 billion in medical debt, with vulnerable populations bearing a disproportionate share of this burden. Groups impacted the most include lower-income individuals, those with disabilities, middle-aged adults, Black communities, the uninsured, and residents of rural areas, as highlighted by the Kaiser Family Foundation.
Undue Medical Debt purchases medical debt at reduced rates, allowing them to alleviate an estimated $100 in debt for each dollar contributed. In addition to its debt purchasing activities, the organization actively collaborates with policymakers to promote regulations that reduce medical costs. Scott’s initial $50 million donation to Undue Medical Debt was made in 2020, followed by an additional $30 million in 2022.
According to CEO Allison Sesso, with the funds from Scott, the organization has managed to relieve nearly $15 billion of medical debt for over 9 million people. This progress is a significant rise compared to the $1 billion in debt relief achieved from 2014 to 2019.
“I’m truly amazed by this latest contribution from MacKenzie Scott and feel honored to administer these funds as we engage in the vital work of dismantling the burden of medical debt facing countless families in our nation,” Sesso remarked.
The sustained financial support from Scott has alleviated the anxiety associated with fundraising for Sesso, enabling her to focus on strategic initiatives to shift the public narrative regarding medical debt—support that has been critical to furthering the conversation on this pressing issue.
Founded in 2014 by former debt collectors Jerry Ashton and Craig Antico, Undue Medical Debt drew inspiration from the advocacy surrounding the Occupy Wall Street movement for debt relief. Initially, the organization experienced slow growth, but Scott’s donations have enabled significant staffing increases, research production, and enhanced engagement with policymakers advocating for changes in hospital billing practices aimed at debt reduction and prevention.
Sesso highlighted the organization’s public policy efforts which have engaged lawmakers in North Carolina, making it the first state to provide additional Medicaid payments to hospitals committed to implementing debt relief strategies. This policy shift was spurred by a 2023 report from Duke University, revealing that one in five families in North Carolina faced collections due to medical debt.
Since 2020, the staff size of Undue Medical Debt has grown from three to approximately 40 individuals. This expansion includes the hiring of an anthropologist focused on collecting personal narratives from those impacted by medical debt to enhance the organization’s research and advocacy efforts. Scott’s contributions have also enhanced the organization’s technological capabilities to better identify individuals eligible for debt relief and pinpoint hospitals willing to sell medical debt.
“This upcoming year, thanks to the grant from MacKenzie Scott, we’ll be adding to our staff to ensure we can support this ongoing growth,” Sesso indicated.
Notably, few organizations have received repeated donations from Scott. Among the few that have are Blue Meridian, which has allocated billions to various nonprofits, and GiveDirectly, known for providing direct cash assistance to low-income individuals worldwide. Since 2020, GiveDirectly has received $125 million from Scott, while Blue Meridian has not disclosed the amounts it received across four separate donations since 2019.
Scott’s contributions to these two organizations are designated for specific initiatives, such as GiveDirectly’s U.S. poverty relief fund. In contrast, the timing of her gifts to Undue Medical Debt has aligned with the urgency of COVID relief efforts.
Scott, who has an estimated net worth of $32 billion, typically refrains from elaborating on her grantmaking choices. While it remains unclear what influenced her decision to provide this third donation, she has previously expressed a desire to assist those most affected by societal issues.
Scott’s recent aid to Undue Medical Debt occurs within the context of ongoing national discussions surrounding healthcare expenses and the insurance industry. Following the murder of UnitedHealthcare CEO Brian Thompson in Manhattan, there has been heightened discourse regarding these topics, with some framing the situation in a controversial light.
Sesso emphasized, “That’s no way to drive change, unequivocally. Yet, the frustration with insurance companies and the accessibility of healthcare is abundantly clear.” The U.S. holds one of the highest healthcare costs globally, and the problem of mounting medical debt continues to escalate. Adam Searing, a public interest attorney and associate professor at Georgetown University specializing in healthcare programs, cited experiences from his past advocating for the uninsured, emphasizing the long-term impact medical debt has on families.
By relieving this financial burden, individuals are given opportunities to regain stability after facing significant health challenges or extensive medical bills. Philanthropy in this area represents a largely bipartisan cause, and Searing believes Scott’s attention to the issue is undoubtedly beneficial, stating, “I think it will lead to a major impact.”
