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The Future

The Great Erasure: Why We Are Burning Your Medical Debt

Your unpayable medical bills are being traded by vultures for pennies. The government is going to buy them for those same pennies and set them on fire.

The Issue

The Zombie Debt Market 💀

Here is a dirty secret the hospital does not want you to know: They do not expect you to pay that $50,000 bill.

After a few months of harassing you, the hospital writes off the debt as a loss. But the bill does not die. It becomes a "Zombie Asset."

The hospital bundles your debt with thousands of others and sells it to a Debt Buyer on the secondary market.

The Price: They sell it for pennies. Often less than 1 cent on the dollar.

So, a collector buys your $10,000 surgery bill for $50.

Then, they call you. They threaten you. They sue you. They ruin your credit score. They try to collect the full $10,000 plus interest.

If they extract even $100 from you, they have doubled their money. It is a business model built entirely on psychological torture and arbitrage. They bought your misery at a discount and are selling it back to you at a premium.

The Trap: The system destroys your financial future over a debt that the original creditor has already considered worthless.

The Fix

The SAFECARE Solution: The Jubilee ✅

We are ending the secondary market for misery.

1. The Medical Debt Redemption Facility (Section 701) We establish a federal facility with one job: To act as the "Debt Buyer of Last Resort."

2. Buying for Pennies (Section 702) The Facility enters the market and buys these portfolios of debt from hospitals and collectors. But we do not pay face value. We pay "Fair Market Value"—the same scrap price the vultures pay.

If a collector bought your debt for $50, we buy it for $50 (or maybe $55, just to make them go away). We do not pay the $10,000.

3. The Bonfire (Section 702(c)) Once the government owns the debt, we do not collect it. We cancel it. Legally. Permanently.

4. Credit Repair (Section 703) We mandate that credit reporting agencies scrub this debt from your record. It cannot be reported as "active" or "settled." It must vanish as if it never existed.

We are authorizing up to $15 billion a year to clear hundreds of billions in face-value debt. It is the highest ROI stimulus package in American history.

Criticism & Rebuttal

myth

"It's Not Fair to People Who Paid"

This is the classic "I suffered, so you must suffer too" argument.

The Reality: Medical debt is not like credit card debt. You didn't buy a TV; you got cancer. Punishing people for bad luck is not "fairness," it is sadism. Furthermore, clearing this debt boosts the economy for everyone because millions of Americans can suddenly buy homes and start businesses again.

risk

"Collectors Will Price Gouge"

Critics warn that if collectors know the government is buying, they will raise the price of the debt.

The Reality: The government has Monopsony Power (we are the only big buyer). If a collector refuses to sell to us at a fair price, they are left holding worthless paper. Why? Because under SAFECARE, the patient now has free healthcare. They have zero incentive to pay an old bill from 2024. The debt is toxic waste. We are the only ones offering to clean it up.

risk

Moral Hazard

If people know debt will be forgiven, will they stop paying bills during the transition?

The Mitigation: Possibly. But since SAFECARE eliminates bills entirely for future care (Section 204), this is a one-time transition problem, not a permanent one. We are cleaning up the legacy mess of a failed system.

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References

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