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5d ago

Connecticut Cancels $100 Million in Medical Debt for Over 100,000 Residents

In the second round of a state-led initiative, $575,000 in ARPA funds were used to erase medical debt, with plans to eventually cancel $1 billion in total.

Stethoscope
FILE - Connecticut Gov. Ned Lamont speaks at the State Capitol, Feb. 7, 2024, in Hartford, Conn. (AP Photo/Jessica Hill, File)
A sample letter from Undue Medical Debt and the state of Connecticut. (portal.ct.gov/)

Overview

  • More than 100,000 Connecticut residents received letters this week informing them that some or all of their medical debt has been erased.
  • The state partnered with the nonprofit Undue Medical Debt, leveraging $575,000 to eliminate over $100 million in debt during this second round of relief.
  • Eligibility is determined by income at or below four times the federal poverty level or medical debt equaling at least 5% of annual income.
  • In total, $6.5 million in American Rescue Plan Act funds have been allocated to this initiative, which aims to cancel $1 billion in medical debt for 250,000 residents.
  • Connecticut’s model has inspired at least 26 other state and local governments, including Los Angeles County, Wayne County, and Rhode Island, to launch similar programs.