A new state program is already helping thousands of Connecticut residents eliminate crushing debt from outstanding medical bills.

Under a recently announced partnership between the state and the national non-profit Undue Medical Debt, almost 23,000 Connecticut residents are having $30 million of medical bill debt completely erased. 

Severe medical debt often results from unexpected illnesses and accidents. About one-third of adults in the United States have difficulty in paying their health care bills, with many losing their homes and being forced into bankruptcy.

Residents whose debt has been designated for erasure began receiving debt relief letters this past December. The legislature and governor worked together to allocate $6.5 million in federal ARPA funding for the initiative.

The state plans to continue to partner with Undue Medical Debt to enact further rounds of relief, including a new deal aiming to eliminate over $200 million of medical debt in the state.

In addition, a 2024 law passed by the legislature prohibits health care providers and hospitals from reporting a person’s medical debt to credit rating agencies. This will particularly help protect people who may be apprehensive about seeking essential medical care for fear unpaid bills could negatively impact their credit rating.

According to government analysis, there is at least $220 billion in medical debt owed across the nation, with almost three million people with over $10,000 in unpaid medical bills.