Michigan has erased more than $21 million in medical debt for 9,767 residents in its third round of debt relief through a partnership with nonprofit Undue Medical Debt.
Four things to know:
1. The latest round brings the state’s total medical debt relief to more than $221 million, according to an Oct. 14 news release from Gov. Gretchen Whitmer’s office. Recipients will begin receiving letters notifying them of the relief the week of Oct. 14.
2. The debt was sourced from local hospitals that chose to remain anonymous. Through its partnership with the state, Undue Medical Debt purchases qualifying medical debt from healthcare providers and collection agencies. On average, every $1 provided to the nonprofit eliminates $100 in medical debt.
3. Residents qualify for relief if they earn at or below 400% of the federal poverty level or have medical debt totaling 5% or more of their annual income. Relief is automatic, and recipients do not need to apply or take action.
4. The initiative is supported by a $4.5 million state appropriation from 2024. Michigan plans to conduct additional rounds of medical debt forgiveness through its partnership with Undue Medical Debt.
