Connecticut is set to pay off the medical debt of nearly 23,000 residents totaling $30 million in a groundbreaking initiative announced by state officials. The state has partnered with the nonprofit charity Undue Medical Debt to eventually eliminate $1 billion in debt for an estimated 250,000 eligible residents. Governor Ned Lamont highlighted that medical debt can be a burden that individuals have little control over, often stemming from unexpected emergencies or out-of-network providers.
Undue Medical Debt, which has been operating since 2014, has already erased roughly $15 billion in medical debt for individuals who meet certain income criteria. The organization has also worked with several states and municipalities to help alleviate the debt burden of their constituents. Connecticut allocated $6.5 million from its American Rescue Plan Act funds, with the first $30 million of debt paid off using $100,000. Other states like New Jersey and Illinois have also conducted debt cancelations with Undue Medical Debt, showcasing the widespread impact of this initiative in addressing medical debt nationwide. Los Angeles County is expected to unveil a similar program to erase medical debt for 150,000 residents.
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