Thousands of Connecticut Residents to See Medical Debt Relief

Thousands of Connecticut residents are about to breathe a sigh of relief as medical debt relief is on its way.

A new initiative is aiming to forgive up to $20 million in medical debt for thousands of state residents.

This debt forgiveness program is a result of a settlement between the state and a major hospital system.

The hospital system has agreed to forgive the debt, which will be paid for by the state.

In Connecticut, almost 23,000 residents will see some or all of their medical debt erased in the coming weeks.

Medical debt is a huge issue in the US, with the majority of people owing over $10,000, according to KFF.

The state is partnering with a nonprofit called Undue Medical Debt to buy up medical debt for pennies on the dollar, using $100,000 from the state's allocation of American Rescue Plan Act (ARPA) funding to wipe out $30 million in owed bills.

Eligible residents include those with debt that's over 5% of their income, and those whose income is at or below four times the federal poverty level, which is about $120,000 for a family of four or $60,000 for a single person.

Residents are automatically selected for the program and will be notified by mail that their debt is being forgiven.

The nonprofit, Undue Medical Debt, is working directly with hospitals in the state to clear those medical debts.

People with disabilities or in poor health are more likely to have medical debt, with data showing that such debt affects over 4 in 10 U.S. adults.

The state is looking to prevent high costs for Connecticut consumers in the first place, with state Sen. Dr. Saud Anwar saying that tackling the price of care will be a priority.

Gov. Ned Lamont is looking for other ways to work with Connecticut hospitals and legislators to tackle the price of care in the state.

Almost 23,000 Connecticut residents will see some or all of their medical debt erased in the coming weeks through a state initiative.

This first round of relief uses $100,000 from the state's allocation of American Rescue Plan Act (ARPA) funding to wipe out $30 million in owed bills.

The majority of people in the U.S. with medical debt owe over $10,000.

Eligible residents include people with debt that's over 5% of their income, and those whose income is at or below four times the federal poverty level.

That's about $120,000 for a family of four, or $60,000 for a single person.

Residents are automatically selected for the program and will be notified by mail that their debt is being forgiven.

People face high costs, especially if they are uninsured, have a high deductible or end up with an out-of-network provider.

Undue Medical Debt is working directly with the hospitals in the state to clear those medical debts.

Over 4 in 10 U.S. adults are affected by medical debt, especially those with a disability or in poor health.

The state needs to prevent high costs for Connecticut consumers in the first place, said State Sen. Dr. Saud Anwar.

Lamont is looking for other ways to work with Connecticut hospitals and legislators to tackle the price of care in the state.