By Laura Bailey
HARTFORD – Governor Ned Lamont announced that nearly 23,000 Connecticut residents who are burdened with medical debt will soon receive notifications informing them that some or all of their debt has been eliminated. T
his relief is part of the first phase of a major initiative launched by the Lamont administration in partnership with the national nonprofit Undue Medical Debt.
The initiative, which aims to reduce the financial burden of medical debt on low-income individuals, uses public funding to help negotiate the elimination of qualifying debts. Residents whose annual income is at or below four times the federal poverty level, or those whose medical debt is 5% or more of their income, are eligible for relief under the program.
“Medical debt comes to patients at an extraordinarily difficult time when they are dealing with serious health ailments, and it can frequently follow them around for decades and impact nearly every aspect of their lives,” Gov. Lamont said. “This erasure will lift the significant emotional toll that this type of debt has on individuals who do not have the means to get out from under their debt, especially for those who are simultaneously experiencing significant medical problems. This first round will provide relief for thousands of Connecticut residents.”
Under the first round of the initiative, the state invested approximately $100,000 in funding from the American Rescue Plan Act (ARPA). This investment allowed Undue Medical Debt to negotiate with collection agencies and healthcare providers to purchase and forgive roughly $30 million in outstanding medical debt for qualifying Connecticut residents.
There is no application process for the debt relief, and it cannot be requested. Instead, residents whose debts have been identified for relief will receive a letter from Undue Medical Debt, notifying them of the specific debts that have been eliminated. These letters are set to begin arriving via U.S. mail on Dec. 23, 2024.
Governor Lamont emphasized that his administration plans to continue partnering with Undue Medical Debt to provide further rounds of medical debt relief. In total, the governor and Connecticut General Assembly allocated $6.5 million in ARPA funding for this initiative.
“We’re very grateful to the State of Connecticut for this sizable investment in medical debt relief and I’m glad this first round of letters is landing in time for the holiday season,” Allison Sesso, CEO and president of Undue Medical Debt CEO and president said. “Debt relief is only one, albeit important, piece of the puzzle in removing an emotional and financial burden on families. I’m very glad that Governor Lamont has also committed to upstream solutions by way of legislation to ensure medical debts do not negatively impact one’s credit score.”
In addition to the medical debt relief initiative, Governor Lamont recently signed legislation that protects patients from having their medical debts reported to credit rating agencies. The law, which went into effect on July 1, 2024, prohibits health care providers and hospitals from using medical debt to impact individuals’ credit scores. This legislative change is designed to ensure that patients are not deterred from seeking necessary care for fear of damaging their credit ratings.
“I am hopeful that by continuing this partnership with Undue Medical Debt,” Gov. Lamont said, “we can help thousands more Connecticut residents get their debt relieved.”
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