Thousands of Illinois residents to have medical debt erased; Will County sees highest relief numbers
Thousands of Illinois residents to have medical debt erased; Will County sees highest relief numbers
Illinois residents will start receiving notifications that their medical debts have been erased as part of the state’s Medical Debt Relief Pilot Program, which has relieved more than $72 million in debt for 52,745 residents.
SPRINGFIELD, Ill. - Illinois residents will start receiving notifications that their medical debts have been erased as part of the state’s Medical Debt Relief Pilot Program, which has relieved more than $72 million in debt for 52,745 residents.
Under the program, launched through a partnership with the nonprofit Undue Medical Debt, the average debt relief per resident is $1,349, with the highest individual debt cancelation reaching $242,136.
Notification letters will begin arriving next week.
"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 Gov. JB 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."
The initiative was proposed by Pritzker in his fiscal year 2025 budget address. The governor signed the medical debt forgiveness bill into law in July, establishing the pilot program and allocating $10 million to acquire unpaid medical debt for Illinois residents.
The program targets debt held by Illinois residents whose household income is at or below 400% of the federal poverty level or whose medical debt exceeds 5% of household income. According to the governor's office, medical debt disproportionately impacts communities of color, with Black Illinois residents 50% more likely than their white peers to incur medical debt.
Debt relief will impact residents across almost every county, with Will County seeing the highest relief numbers at 20,832 residents.
The debt was acquired from collection agencies, direct providers and hospitals.