For Immediate Release - October 4: Recognizing the need to assist California residents struggling with medical debt, healthcare practitioners joined financial services providers and community groups last week to discuss how best to implement the Affordable Care Act and strategies for keeping Californians from acquiring medical debt. At the community forums held in Los Angeles, Oakland, and Fresno, attendees highlighted the needs of their communities and options for those plagued by medical debt.

Over two million Californians have medical debt, which makes it difficult for them to access needed healthcare or affordable credit. In more than half of personal bankruptcy cases, medical bills are listed as a major factor.

"The data is clear: inadequate health coverage and medical emergencies drive a working family into financial ruin and devastate their ability to become financially mobile," said Assembly Member Ricardo Lara (D-Bell Gardens). "As chair of the Select Committee on Financial Empowerment, I'm encouraged by the proactive measures and potential policy solutions highlighted throughout the state to address and prevent the devastation caused by medical debt."

A recently released report by the New America Foundation found that medical debt results from inadequate health insurance and unaffordable health care costs. The report, "Tarnish on the Golden State: How Medical Debt Threatens Family Financial Security," lays out policy options that California policymakers can take to implement the Affordable Care Act in order to expand insurance coverage and alleviate credit problems for those with medical debt.

"Millions of Californians are overwhelmed by the problem of medical debt," said Mark Rukavina, author of 'Tarnish on the Golden State.' "Medical debt limits their access to needed care and to affordable credit and can lead to poverty. Fortunately, the Affordable Care Act will provide relief by expanding access to adequate insurance coverage thereby reducing the likelihood of medical debt."

Building on the report, Olivia Calderon, California Director of the New America Foundation's Asset Building Program, emphasized the opportunity for community groups and financial services providers to be a part of the solution in helping Californians access needed health care while reducing the burden of medical debt.  

"The ACA provides a great opportunity, not only for hospitals and clinics, but also for nonprofits and banks to help break the poverty cycle," said Calderon. "Now more than ever, we need to eliminate policies that penalize people from saving and advance policies that encourage and allow hardworking Californians to save and build their personal emergency fund."

"Poverty leads to poor health and poor health leads to poverty," said Leif Wellington Haase, Senior Research Fellow in New America's Health Policy Program. "We have a chance to break this cycle by implementing health reform and ensuring that more Californians have access to health care."

The gatherings were convened by the New America Foundation and the Select Committee on Financial Empowerment, with regional partners including the Federal Reserve Bank of San Francisco in Los Angeles, United Way of Fresno County, Urban Strategies, and the Alameda County Department of Public Health.

The New America Foundation's California Asset Building Program has championed "assets" in all policies -- health, education, banking and taxation -- to increase access to health care, create kids' savings accounts, help taxpayers save their refunds, incentivize savings for college, entrepreneurship, and retirement, remove savings barriers, and curb predatory lending.

For media requests, please contact Elizabeth Wu at (510) 295-9859 or wu@newamerica.net.