Over 100,000 in Connecticut Receive Medical Debt Relief Letters

CONNECTICUT — More than 100,000 Connecticut residents are receiving letters this week notifying them that some or all of their medical debt has been eliminated, Gov. Ned Lamont announced Wednesday.

The debt forgiveness is part of the second round of a state initiative launched last year in partnership with Undue Medical Debt, a nonprofit organization that buys and cancels bundled portfolios of medical debt. This latest phase uses $575,000 in American Rescue Plan Act (ARPA) funds to erase more than $100 million in qualifying debt.

To qualify, recipients must either earn less than 400 percent of the federal poverty level or have medical debt that exceeds 5 percent of their annual income. The debt is purchased in bulk for pennies on the dollar, with no application required from patients.

The current federal poverty level is an annual income at or below $32,150 for a family of four.

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

"Over the next few days, more than 100,000 Connecticut residents who have been struggling to pay their medical bills will feel relief," Lamont said. “I am hopeful that additional medical partners will soon sign onto this program.”

The first round of the initiative in December canceled approximately $30 million in medical debt for 23,000 state residents.

Recipients of the latest round will receive a letter in the mail from Undue Medical Debt, confirming their eligibility and detailing the debt forgiveness. Lamont’s administration plans to continue working with the nonprofit through additional rounds, with $6.5 million in ARPA funds allocated for future efforts.

Related: $1 Billion In Medical Debt To Be Canceled For CT Residents: Here's What To Know