The state has erased over $1.4 billion in medical debt for almost 700,000 Illinoisans for pennies on the dollar, two years after launching a new relief program.
Capitol News Illinois reports the state has surpassed its $1 billion goal for the Illinois Medical Debt Relief Program by $400 million, spending less than $10 million in state dollars to achieve these results.
Governor JB Pritzker told reporters in Chicago on Thursday that medical debt is a leading cause of bankruptcy and a symptom of a “truly broken system.”
The state partnered with Undue Medical Debt — a nonprofit that works with local governments and healthcare providers to purchase and eliminate qualifying medical debt owed by low-income residents.
Illinois residents whose household income is at or below 400% of the federal poverty level, or who have medical debt equal to 5% or more of their household income, are eligible.
Residents do not apply to this program. Impacted households receive letters after their debts have been erased.