More than 22,000 residents of Connecticut can expect some or all their medical debt to be eliminated, thanks to a major state initiative in partnership with the national nonprofit organization Undue Medical Debt.
Undue Medical Debt collaborates with state and local governments to leverage public investments, negotiating with hospitals and other providers to eliminate large, bundled portfolios of qualifying medical debt. This initiative specifically targets patients whose income is at or below four times (400%) the federal poverty level, or who have medical debt that constitutes 5% or more of their income. Because these medical debts are acquired in bulk and pertain to individuals who are least able to pay, they can be purchased at a fraction of their face value.
In this initial round, the state allocated approximately $100,000 from its share of the American Rescue Plan Act (ARPA) funding. With this investment, Undue Medical Debt successfully negotiated with a secondary market partner (such as a collections agency) and a national provider to acquire approximately $30 million in qualifying medical debt for Connecticut residents.
Residents do not need to apply for this medical debt relief, nor can they request it. Those whose debts have been identified for relief will receive a branded letter from Undue Medical Debt detailing which debts have been eliminated. These letters will be sent out through the U.S. mail, starting December 23, 2024.
To view a sample of the letter recipients will soon receive in the mail, please click HERE.
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