Creighton students help erase $2 million in medical debt for Nebraskans

For about 1,500 Nebraskans, this Thanksgiving is a little sweeter knowing their medical debt was forgiven due to the work of some Creighton University students.

The Creighton chapter of Students for a National Health Program spent the past year holding fundraisers like bake sales, a flower sale and a dance- off event to raise about $10,000 that erased more than $2 million in medical debt. They partnered with Undue Medical Debt, a nonprofit that negotiates with hospitals to buy medical debt at a lower price.

Allison Benjamin, who graduated from Creighton in May and was president of the campus chapter, used an example that Undue Medical Debt may buy $100 of medical debt for only $1.

“The reason that hospitals are willing to sell this is because they — and this is something that's interesting about medical debt — but they don't always think that it will get paid back,” Benjamin said. “For the hospital, it's a better deal to have $1 instead of $0.”

The national organization focuses on medical debt for people at or below 400% of the federal poverty level or who have medical debt that exceeds 5% of their income. Benjamin, who wrote her thesis on medical debt, said people who owe hospitals money are more likely to avoid further needed health care.

“Medical debt is also a risk factor for insecurity, inability to pay rent, mortgage and/or utilities, eviction or foreclosure, and homelessness,” Benjamin said. “The spiral of economic disadvantage that results from personal debt, of which medical debt is now the largest contributor, tends to cluster in families and communities and crosses over to subsequent generations.”

She added that those debts are even worse for communities of color, especially Black and Latino communities. According to a 2022 KFF survey, more than half of Black and Hispanic respondents had medical debt, compared with 37% of White respondents.

Benjamin said it was meaningful to play a part in forgiving some of that medical debt.

“I feel like health care is a human right, and I think to be healthy is something that's essential for life,” Benjamin said “Having this weight over you of having to pay this bill is just really overwhelming. I think that even if it's a small action like relieving somebody's $1,500 bill, that can make a big difference for some people.”

On average, the Creighton students helped forgive about $1,455 per person across 19 Nebraska counties.

The Creighton effort is similar to ones done by other organizations in recent years, including an Omaha church that raised $25,000 to help pay off $2.5 million in medical debt and a Lincoln church that raised more than half a million dollars to pay off medical debt of residents in its neighborhood.

Benjamin said her favorite fundraising event to put on was “Dance Off Debt.” Several dance clubs, like the Salsa Club that Benjamin was a part of showcased their talents while bringing light to medical debt. They sold tickets to the event and had “miracle minutes” to raise as much money as possible during a one-minute period.

It was also Autumn Woolpert’s favorite event. She graduated from Creighton in May and was vice president of the student chapter. Her dance club also performed, called Hui ‘O Hawai’i.

“Being able to make a difference was the motivator that helped us put together all of these events and keep fundraising throughout the year,” Woolpert said.

Woolpert added that she was grateful to everyone who made the dance fundraiser and other fundraisers possible.

“I feel like it goes to show that really a small group of people can make a really big difference in the community, especially in a time like now where health care is extremely politicized, and health care costs just continue to rise,” Woolpert said. “It's a significant challenge for a lot of people to be able to afford healthcare and other basic needs.”

Marshall Biven, second-year medical student at Creighton, said his favorite fundraiser was selling flowers, especially because the vases were donated by his friend and the friend’s dad, who blow glass.

“It shows that there's a level of solidarity that we all kind of understand that we're in this together,” Biven said. “It gives people an opportunity to contribute in a way that makes sense to them.”

Biven said about 66% of personal bankruptcies are related to medical debt. He cited a ProPublica article about 10ten years ago that showed Nebraska had one of the highest rates of medical debt lawsuits in the country, some for bills as low as $60. Nebraska eventually raised the costs to file a lawsuit to better protect those with medical debt, but Biven said there is still more that can be done.

“This really is, at the end of the day, both a policy failure on the legal side as well as when it comes to just people not being able to afford the cost of medical care,” Biven said. “It's a very complex issue.”

Erika Germinario, a senior undergraduate student in psychology and computer science, agreed with Biven. She said while debt abolishment isn’t a permanent solution, it’s a fix that they can help with.

“A lot of times students, we kind of feel powerless a little bit to like, what can we really do?” Germinario said. “I think it is a good example of how young people and students really can make a difference, and it's just like the first baby step into making a real change.”

Germinario said the student group pivoted this year to partner with another organization, OneWorld in Omaha, that provides care to underinsured or uninsured patients. But, Germinario said, she is happy with the impact they had for Nebraskans with medical debt.

“It feels amazing,” she said. “In Nebraska, the statistic is about one in 16 residents report medical debt. I think being able to abolish over $2 million of that is just an incredible feeling.”

Biven agreed, saying the personal impact they had for those 1,500 Nebraskans who woke up one day to find their medical debt erased.

“They were like, ‘I can go and buy groceries. I can go and watch a movie, take my family to a movie because I don't have to worry about how I'm going to get these $4,000,’” Biven said. “I think that means the most to me, is really thinking about, OK, what did this person feel like when they got that letter? That feels really good.”