Lamont Says 40,000 More CT Residents Will See Medical Debt Erased In Latest Relief Round

CONNECTICUT — Nearly 40,000 Connecticut residents will receive notices this week informing them that some or all of their medical debt has been erased under a state-backed initiative announced Monday by Gov. Ned Lamont.

The latest round of relief will eliminate more than $63 million in medical debt through a partnership between the Lamont administration and the national nonprofit Undue Medical Debt. Since the program began in December 2024, about 160,000 Connecticut residents have seen a combined $198 million in medical debt erased, state officials said.

Lamont said the effort is aimed at easing financial stress that can interfere with recovery and access to care.

“Medical debt can delay healing due to stress and anxiety about how to pay these bills,” Lamont said. “This makes a real difference in the lives of our families.”

Under the program, Undue Medical Debt uses state funding to negotiate the purchase of large portfolios of qualifying medical debt from hospitals and collection agencies. Eligible debt belongs to residents with incomes at or below 400 percent of the federal poverty level or whose medical debt equals at least 5 percent of their income. For a family of four, the federal poverty threshold is currently $32,150 annually.

Because the debt is purchased in bulk and typically belongs to patients least able to pay, it can be acquired for a fraction of its face value, often for pennies on the dollar, officials said.

Residents selected for relief will receive letters from Undue Medical Debt in branded envelopes over the coming days. There is no application process, and debt relief cannot be requested, as eligibility is determined through the portfolios acquired by the nonprofit.

Allison Sesso, president and CEO of Undue Medical Debt, said the third round builds on earlier progress.

“Medical debt creates both financial strain and emotional burdens that prevent families from seeking the care they need,” Sesso said. “Removing these unpayable debts helps patients and communities thrive.”

The first round of the initiative erased about $30 million in medical debt for roughly 23,000 people in December 2024. A second round in May 2025 eliminated more than $100 million in debt for about 100,000 residents.

Lamont said the state intends to continue the program. Legislation enacted by the governor and the General Assembly makes $6.5 million in federal American Rescue Plan Act funding available for future rounds of medical debt cancellation.