Democratic governor partners with nonprofit to erase medical debt

Elections matter! Connecticut Governor Ned Lamont announced this week that nearly 23,000 Connecticut residents who owe medical debt will have some or all of their debts erased in the first round of a major initiative in the part of a partnership with the national non-profit organization. Undue medical debt.

The nonprofit contracts with state and local governments and leverages public investments to negotiate with hospitals and other providers to eliminate large pooled portfolios of eligible medical debt owed by equal-income patients. or less than four times (400%) the federal poverty level. or who have medical debt representing 5% or more of their income. (The current federal poverty level is annual income at or below $31,200 for a family of four.) Because these medical debts are incurred en masse and belong to those least able to pay, they cost a fraction of their nominal value.

As part of this first round, the Lamont administration invested approximately $100,000 from the state’s American Rescue Plan Act (ARPA) allocation, and Undue Medical Debt was able to negotiate with a partner secondary market (i.e., collection agency) and national provider to acquire approximately $30 million in eligible medical debt for Connecticut residents.

There is no application process for this medical debt relief and it cannot be applied for. Instead, residents whose debt has been identified for relief will receive a marquee letter from Undue Medical Debt indicating which debt(s) have been eliminated. Letters in this first round will be delivered to Connecticut residents by U.S. mail beginning December 23, 2024.

Merry fucking Christmas! This is the way to do it.