210K MI Residents To Have Medical Debt Erased: What To Know

MICHIGAN — More than 200,000 Michiganders will see their medical debt cleared as part of a plan to forgive $144 million in medical debt across the state, Gov. Gretchen Whitmer announced Thursday.

The debt relief comes through a partnership with the nonprofit organization Undue Medical Debt, which purchases medical debt for pennies on the dollar.

On average, Whitmer's office said every dollar donated to the nonprofit relieves $100 of medical debt. The debt that was forgiven in this first round came from local hospitals, which told the governor they want to remain anonymous.

"Here in Michigan, we believe being sick or getting injured shouldn’t mean going broke," Whitmer said. "This action ensures fewer Michigan families have to choose between putting food on the table or paying their medical bills, at a time when so many already have to make hard choices due to Republican cuts to Medicaid."

Those who qualify for the debt relief are either four times or below the federal poverty level or have medical debts that equal 5 percent or more of their annual income. They will receive an unbranded letter in the mail in July 2025. The letters will simply inform them of debt relief details and encourage them to share their stories.

This round of funding focused primarily on southeastern Michigan, including $27 million for residents in Macomb, Monroe, Lenawee and St. Clair counties.

Other counties that will see debt relief this round include: Jackson, Kent, Genesee, Ingham, Calhoun and St. Joseph counties.

Undue Medical Debt had already been working with Wayne County since March 2024, clearing $42 million in medical debt for more than 71,000 residents.

Oakland and Kalamazoo counties have also been working with Undue to forgive millions of dollars of debt for Michiganders in their communities.

"Medical debt is a burden that no one chooses — people don't choose to get sick, injured or have a chronic disease," Allison Sesso, President and CEO of Undue Medical Debt. "For too many, getting care can quickly turn into financial distress, threatening families' futures."