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Greg Stadter's avatar

Excellent read and I've been interested in the burden medical debt puts on families, especially low-income ones. Did Ald. Meindl cite any sources for the below claim? It is powerful and I'd like to advance in other circles, but want to understand the source before I run with it.

"Seventeen percent of households, and a quarter of households of color in Milwaukee county, are in medical debt collections. Far above the national average. Medical illness and the associated debt in many cases is not some personal failing of the individual. Medical debt straps families and prevents dollars from circulating in our communities and small businesses. "

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Andrew's avatar

Thank you for covering city hall!

I couldn't spit it out during the meeting, but we were talking about the administrative expense ratio. It is not a "cut." The administrative expense ratio measures the percentage of an organization's expenses allocated to administrative costs. There is a myth that non-profits shouldn't have administrative expenses, but that isn't possible in most cases.

Charity Navigator generally gives its highest rankings to organizations that spend less than 15% of expenses on overhead. The Better Business Bureau's Wise Giving Alliance recommends a ratio of less than 35%. RIPMedical Debt is at 15%. Almost all of their administrative expense ratio comes from the Mackenzie Scott donations and not government funding.

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