Arizona has now erased more than $1 billion in medical debt through a partnership with Undue Medical Debt.
To date, 670,963 Arizonans have received relief through the initiative, with more than 200,000 relief letters going out this week, according to an Aug. 5 news release from Arizona Gov. Katie Hobbs’ office.
Arizonans qualify for debt relief if they owe at least 5% of their annual income in outstanding medical bills or earn at or below 400% of the federal poverty level, roughly $100,000 for a family of three. Undue Medical Debt purchases bundled debt portfolios from participating hospitals and collection agencies at a fraction of face value, then cancels the balances.
Prior to the launch of the initiative, Arizonans had an estimated $2.4 billion in medical debt.
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