Connecticut is erasing nearly $315 million in medical debt for more than 97,000 residents in the fourth round of its medical debt relief program.
The initiative has now eliminated more than $513 million since the program began in 2024, according to a June 2 news release from Gov. Ned Lamont’s office.
The program operates through a partnership with national nonprofit Undue Medical Debt, which uses state funding to negotiate with hospitals and other providers to purchase and eliminate large, bundled portfolios of qualifying debt. Residents are eligible if their income is at or below 400% of the federal poverty level, or if their medical debt represents 5% or more of their income. Because debt is purchased in bulk, it is acquired at a fraction of face value, often pennies on the dollar. There is no application process and relief cannot be requested.
Gov. Lamont said the state will continue partnering with the nonprofit this year to cancel additional debt. The Connecticut General Assembly has made $6.5 million in American Rescue Plan Act funding available for the initiative through 2026.
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