Illinois expanded the Medical Debt Relief Program to nearly 170,000 more residents

SPRINGFIELD (25News Now) - Gov. JB Pritzker said since the Medical Debt Relief Program began last July, it has erased $345 million in medical debt for 270,000 people, with the goal of erasing $1 billion of debt.

Residents with a household income at or below 400% of the federal poverty level, or those with medical debt that takes up five percent or more of their income, are automatically qualified for the program. w

“The Kaiser Family Foundation estimates that nearly 10% of Illinois’s population, and 100 million people nationwide, struggle with medical debt,” said the nonprofit the Vice President of Government initiatives on Undue Medical Debt, Courtney Story.

Those whose debt has been forgiven so far will receive letters next week notifying them they no longer owe.

“Too many people have had their credit ruined due to an unpaid medical bill,” said Pritzker. “Too many have been pushed into bankruptcy due to a prolonged or unexpected illness. When you’re in an accident and need emergency medical attention, you don’t have time to budget out a hospital visit.”

The state program is modeled after a Cook County program that has relieved more than $380 million in medical debt to more than 200,00 residents.

Illinois is partnering with the non-profit Undue Medical Debt, which can buy debt from collection agencies, hospitals, and similar entities for just a few cents per dollar.

Every dollar collected translates to $100 of debt relief.

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