Medical Debt Has Been Erased For 23,000 CT Residents: Lamont

CONNECTICUT — Nearly 23,000 Connecticut residents are about to learn their medical debt has been erased.

A new partnership between the state and the national nonprofit organization Undue Medical Debt leverages public investments to negotiate with hospitals and other providers on the elimination of large, bundled portfolios of qualifying medical debt owed by patients whose income is at or below four times the federal poverty level or who have medical debt that is 5 percent or more of their income. As it was bought in bulk, the nonprofit was able to utilize a collections agency to acquire the debt at a fraction of its value.

Gov. Ned Lamont made the announcement during a news conference Monday.

Under this first round, the Lamont administration invested approximately $100,000 from the state's allocation of American Rescue Plan Act funding. From that, Undue Medical Debt was able to acquire approximately $30 million in qualifying medical debt owed by Connecticut residents.

There is no application process for this medical debt relief, and it cannot be requested, according to a news release from The Governor's Office. Instead, residents whose debt has been identified for relief will receive a letter from Undue Medical Debt indicating which debt or debts have been eliminated. Letters under this first round will be delivered to Connecticut residents through the U.S. mail beginning Dec. 23.

Lamont said that his administration intends on continuing to partner with Undue Medical Debt to secure additional further rounds of medical debt elimination.