Imagine being saddled with medical debt, caused by an illness or accident you or a family member had no control over, and out of the realm of your own means to repay. Every aspect of your financial life is affected by the debt and the ruination of your credit. Now imagine getting a letter in the mail, out of the blue, letting you know your medical debt has been paid in full.
This gift recently became a reality for just over 4,500 people in 19 counties throughout the Texas Hill Country. It started with a few caring individuals in Mason who wanted to find a way to help, and the many generous donors who stepped up when they did.
A Mason businessman began talking with a few friends about how they could help local folks with medical bills, beyond the small fundraisers often held in town. The group began researching what could be done and came across a non-profit organization called Undue Medical Debt (UMD). UMD is a charity that uses donations to buy large bundles of medical debt that they then relieve, with no tax consequences to donors or recipients. After hospitals and medical groups have tried to collect on unpaid medical bills for a period of time (typically 12-18 months), they offer this debt for sale to debt collectors for pennies on the dollar. UMD purchases this debt directly from the hospitals, medical groups, or debt collectors, pays for it with donations, and forgives the debt.
