Quick Take | Making room for care

Indian philanthropists can learn from an American nonprofit's model to tackle the soaring hospital costs and the resulting medical debt in India

Almost half of all medical expenditure is still paid out of pocket in India (Photo | Rawpixel/CC by 4.0)

The US shows India one approach to medical debt. Undue Medical Debt, a nonprofit, buys unpaid medical bills cheaply and cancels them. It estimates that it will relieve $22.8 billion in medical debt for more than 16.6 million people with limited means in 2026. Its model suggests that every $1 donated can erase about $100 in medical debt. Indian philanthropists can emulate this model. There is also an alternative available: a healthcare payment system that complements insurance, covers preventive and post-treatment care, reduces out-of-pocket costs, and provides low-cost credit for expenses that insurance does not cover. Families should not increase their risks by delaying tests or specialist care because they cannot afford them.