Illinois has erased more than $1.1 billion in medical debt for more than 500,000 residents.
Working in partnership with Unpaid Medical Debt, the state has committed about $10 million to eliminate the more than $1 billion in debt, according to a Feb. 17 news release from Illinois Gov. J.B. Pritzker. Undue Medical Debt purchases bundled medical debts, often for pennies on the dollar, from health systems as well as secondary debt markets, covering past owed bills for residents with documented financial need.
There is no application process for medical debt relief. Debt is purchased in bulk and forgiven for eligible residents. To qualify, individuals must earn at or below 400% of the federal poverty level or hold medical debt totaling at least 5% of their annual income.
The average amount of debt relieved per person in Illinois is $1,200, according to the release. Some patients have seen tens or hundreds of thousands of dollars of relief, including one patient who received more than $300,000 in debt relief.
“Medical debt can create a cascade of issues that go beyond the immediate financial challenges experienced by those who are burdened by it,” said Illinois Department of Healthcare and Family Services Director Elizabeth Whitehorn. “This program has improved the lives of families across the state, and we look forward to continuing to expand its reach this year.”
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