Illinois Medical Debt Forgiveness for Low-Income Residents

If you're a low-income resident of Illinois struggling with medical debt, there is hope. The state offers a medical debt forgiveness program to help alleviate financial burdens.

The program is designed to forgive medical debt for low-income residents who meet certain eligibility criteria. This can include individuals with incomes below 200% of the federal poverty level.

To qualify, residents must have outstanding medical debt that is not being contested or disputed. They must also provide proof of income and medical expenses.

The state of Illinois has implemented several medical debt forgiveness programs to help residents who are struggling with medical debt. One such program, the Medical Debt Relief Pilot Program, has already erased $72 million in medical debt for over 52,000 residents.

Those who qualify for the program have household incomes at or below 400% of the federal poverty level or have medical debt that exceeds 5% of their household income. The state estimates that the amount of debt abolished per person is $1,349, with a maximum per-person amount of $242,136.

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The program is part of a broader effort to erase $1 billion in medical debt across Illinois, and funding comes in part from the national nonprofit Undue Medical Debt. The state aims to bring relief to vulnerable communities across the state, where medical debt disproportionately affects Black residents, who are 50% more likely to accrue medical debt than their white peers.

The Illinois Medical Debt Relief Pilot Program wiped out $72 million in medical debt for over 52,000 residents. This is the first part of an effort to erase $1 billion in medical debt across Illinois.

Those who qualify received letters notifying them that their debts have been eliminated. This includes individuals whose household income is at or below 400% of the federal poverty level, or whose medical debt exceeds 5% of their household income.

The state estimates the amount of debt abolished per person is $1,349, with a maximum per-person amount of $242,136. This means that some people may have had significantly more debt erased than others.

Medical debt disproportionately affects Black residents, who are 50% more likely to accrue medical debt than their white peers.

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The state of Illinois is taking a significant step towards providing relief to its residents by erasing $1 billion in medical debt for low-income residents. This is part of a four-year plan that aims to clear the medical debt of over 1 million residents.

The Medical Debt Forgiveness bill was recently passed as part of the 2025 Fiscal Year budget, and it's expected to benefit around 300,000 low-income residents. These residents will have their medical debt erased if their household income is below 400% of the federal poverty level, which is about $125,000 a year.

No Illinoisan should face financial ruin after receiving the medical care they need. Gov. JB Pritzker stated this, emphasizing the importance of providing financial security to those who are suffering under the weight of unpaid debt.

The plan is expected to have a broad impact, as nearly 90% of Illinoisans with medical debt live under 400% of the federal poverty level. Cook County already has a similar program in place, which has erased nearly $350 million in debt for 200,000 people.

This program is a significant step towards helping families focus on health and recovery without the weight of financial strain. The state estimates the amount of debt abolished per person is $1,349, with a maximum per-person amount of $242,136.

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You can start by asking your hospital for financial assistance. Visit their website or call the customer care number on your invoice to see if they have a financial assistance policy in place.

If you're uninsured and don't meet the requirements for a low-income household, you may be eligible for a self-pay discount.

Explore all options available with your healthcare provider to try to negotiate a reduced amount instead of ignoring the bill.

They may allow you to enter into a monthly payment agreement that fits your budget if you're unable to negotiate a reduced amount.

Financial assistance programs and charity care at nonprofit hospitals are also options to consider.

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Managing Medical Debt can be a daunting task, especially in Illinois. We've got a comprehensive guide that can help you find debt relief in your state.

You can start by exploring state-specific resources, like the one mentioned in our guide, which provides steps to take and resources to access debt relief in all 50 states.

Illinois residents have access to debt relief options, including specialized guides that offer steps to take and state-specific resources to find relief.

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If you're struggling with medical debt, the first step is to get debt relief in your state through a specialized guide that provides steps to take and state-specific resources.

You can find debt relief in all 50 states, which means there's help available no matter where you live.

To get started, take a deep breath and acknowledge that seeking help is a sign of strength, not weakness.

There are state-specific resources available to help you manage medical debt, such as the guide on how to find debt relief in all 50 states.

You can use this guide to find relief and take control of your finances.

It's essential to take action and seek help as soon as possible to avoid further financial strain.

By taking the first step, you can start to feel more confident and in control of your financial situation.

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Illinois is a great example of a state taking action to help its residents with medical debt. About 300,000 low-income residents will have their medical debt erased thanks to a recently passed bill.

The Medical Debt Forgiveness bill aims to clear the medical debt of over 1 million residents in four years. This is a significant step towards restoring financial security to those who are suffering under the weight of unpaid debt.

In Illinois, residents with a household income below 400% of the federal poverty level, which equates to about $125,000 a year, or people who have debt that takes up 5% or more of their household income, could qualify for debt forgiveness. This is a broad impact, as nearly 90% of Illinoisans with medical debt live under 400% of the federal poverty level.

Cook County already has a similar program in place, which has erased nearly $350 million in debt for 200,000 people. This shows that debt forgiveness programs can be effective in helping residents get back on their feet.

By taking action on medical debt, Illinois is setting an example for other states to follow.

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