Gov. Pritzker announces $72M in medical debt relief for over 52,000 Illinoisans

(WAND) - The State of Illinois’ Medical Debt Relief Pilot Program has relieved more than $72 million worth of medical debt for 52,745 Illinois residents, Governor JB Pritzker's office announced.

This comes as part of the State's commitment to erase roughly $1 billion in medical debt across Illinois.

Starting next week, individuals benefiting from medical debt relief will get letters notifying them that their debts have been eliminated.

The average amount of debt abolished per person is $1,349, and the maximum debt abolished for one individual is $242,136.

In order to implement the pilot program, the Illinois Department of Healthcare and Family Services used Undue Medical Debt as a partner. Undue Medical Debt, a national nonprofit, works with governmental entities across the country on similar debt forgiveness programs.

“Earlier this year, I signed legislation to forgive $1 billion in medical debt, and today we’re seeing the positive impact of that commitment for Illinoisans,” said Pritzker. “With over $72 million in debt already erased for more than 52,000 Illinoisans, the Illinois Medical Debt Relief Pilot Program represents a promise to help families focus on health and recovery without the weight of financial strain. We’re just getting started, and my administration remains dedicated to bringing this relief to vulnerable communities across the state.”

“This initiative brings significant relief to many Illinois families burdened by medical debt,” said Lt. Governor Juliana Stratton. “The Illinois Medical Debt Relief Pilot Program uplifts the well-being of our families while strengthening our commitment to health equity across the state.”

The program targets debt held by Illinois residents with a household income at or below 400% of the federal poverty level or whose medical debt is at or exceeds 5% of their household income. Eligible Illinois residents do not need to apply for assistance; impacted households receive notification letters after their debts have been eliminated in a branded Undue envelope. Medical debt relief is source-based, meaning only qualifying medical debts sold from participating partners like hospitals are eligible for relief and consumers cannot request debt relief. Additional waves of relief letters will be announced by the state ahead of their release.

“Medical debt can be crushing for families, and I encourage our hospital partners to participate in this program to help alleviate that burden,” said Acting HFS Director Elizabeth M. Whitehorn. “This program will be life-changing for people across Illinois and continues our momentum toward a more equitable healthcare system where everyone can access quality care.”

Residents in nearly every county in the state had medical debt relieved as part of the inaugural debt buyback. The largest number of debts relieved are in Will County, where a total of 20,832 individuals will receive debt relief. The debt was purchased from debt collection agencies, a national direct provider, and hospitals.

Illinois is also partnering with the Illinois Health and Hospital Association on the Medical Debt Relief Pilot Program. Undue Medical Debt is also actively working to establish partnerships with other providers like physicians’ groups to sell or donate qualifying debt portfolios.

“I’m grateful to Governor Pritzker and the state of Illinois for making this ambitious investment in removing the financial and emotional burden of medical debt from tens of thousands of state residents already,” said Undue Medical Debt CEO and president Allison Sesso. “This also wouldn’t be possible without community-minded provider partners like hospitals and physicians’ groups who work with us to ensure medical debt is not a hindrance to ongoing care. We look forward to continuing our work in the state and helping families seek healthcare with dignity.”

"I am proud to have worked with Gov Pritzker to help our neighbors struggling with something that should have never existed: medical debt," said Rep. Kelly Cassidy (D-Chicago). "With his administration's leadership, Illinois continues to put working families first by addressing this significant financial burden."