Illinois slashes $220M in medical debt for 170K residents, more relief on the way

Illinois slashes $220M in medical debt for 170K residents

The latest round of Illinois' Medical Debt Relief Program has erased more than $220 million in medical debt for 170,000 residents across the state.

ILLINOIS - The latest round of Illinois' Medical Debt Relief Program has erased more than $220 million in medical debt for 170,000 residents across the state.

Governor JB Pritzker made the announcement Wednesday, following his recent State of the State address and his proposed fiscal year 2026 budget, which includes efforts to expand healthcare access and affordability.

Medical Debt Erased for 170,000 Illinoisans

What we know:

The relief, which averages nearly $1,300 per person, brings the program’s total debt forgiveness to more than $345 million for nearly 270,000 Illinoisans.

The state has spent approximately $2 million on the program, which buys and forgives medical debt at a ratio of $1 spent per $170 erased, according to the governor's office.

Pritzker launched the initiative in 2024 with the goal of eliminating $1 billion in medical debt over several years. His proposed FY26 budget includes $15 million to continue the program.

Who Qualifies?

Dig deeper:

The program targets debt held by residents with household incomes at or below 400% of the federal poverty level or individuals whose medical debt equals at least 5% of their income.

Eligible residents do not need to apply to receive assistance.

The latest round of recipients were notified of their relief by mail, according to the governor's office. Notification letters for the next group of recipients will be issued next week.

What they're saying:

"We started this program with a simple premise: in a healthy and functioning society, no one should be in financial ruin simply because they get sick," said Gov. Pritzker. "This program makes a major impact on the lives of the most vulnerable Illinoisans while also maintaining our commitment to fiscal responsibility with a fantastic return on investment—the gold standard for this kind of work."

Lt. Gov. Juliana Stratton emphasized the program’s broader impact.

"This program is not just about relieving debt—it’s about easing burdens and ensuring that Illinois families never have to choose between their health and financial well-being," said Stratton. "Medical debt should never be a barrier to care. By expanding this initiative, we are reaffirming our commitment to health equity and making it clear that access to healthcare is a right, not a privilege."

"I have been so touched to hear the stories of families whose medical debt was relieved during the first round, and how big of a difference this debt abolishment can make," said Elizabeth M. Whitehorn, director of the Illinois Department of Healthcare and Family Services, which administers the program. "We’re very excited to announce the latest round and look forward to additional rounds that will provide economic relief for so many Illinoisans."

The backstory:

Illinois is one of the first states in the country to address medical debt, a leading cause of bankruptcy.

The state partners with Undue Medical Debt, a national nonprofit, to administer the program. Hospitals including the University of Chicago Medical Center, Advent Health, Mount Sinai Hospital, and Loyola Medicine have joined the initiative.

To learn more about the program, follow this link.