Over 210,000 Michigan residents to benefit from medical debt relief plan
Michigan Gov. Gretchen Whitmer and others made the announcement Thursday, saying that the first round of debt forgiveness under this plan will assist over 210,000 individuals with clearing over $144 million in medical debt.
"Medical debt affects our friends, neighbors, and families, making it harder to get a job, put food on the table, or access medical care," Lt. Governor Garlin Gilchrist II said in his statement. "Today's forgiveness of over $144 of medical debt will help over 200,000 Michiganders in communities across our state move forward with their lives."
This effort is a partnership with the nonprofit Undue Medical Debt.
On average, each dollar donated to the organization is used to settle $100 of medical debt. Undue Medical Debt says it starts the process through buying large amounts of debt at a discount.
But rather than collecting on the amounts due, the agency says it forgives the balance for the intended beneficiaries. The goal is "freeing them from bills they can't afford."
Medical debt is often cited as a leading reason for bankruptcy, the state's announcement said.
Those who were selected will get a letter in the mail from Undue Medical Debt that explains the circumstances and how the debt relief was applied to their accounts.
The list of eligible patients came from hospitals and other medical providers that have chosen to participate with Undue Medical Debt. Those who qualify for this medical debt relief program have household income either four times or below the federal poverty level (those ranges for Michigan residents include $62,000 annually for one person and $84,600 for two people) or whose outstanding medical debt equal 5% or more of their annual income.
This first round clears outstanding bills for thousands of patients in Calhoun, Genesee, Ingham, Jackson, Kent, Lenawee, Macomb, Monroe, St. Clair and St. Joseph counties, according to the State of Michigan announcement. There also are some recipients in other counties.
Additional rounds of medical debt forgiveness will take place in the future, state officials said.
Similar efforts have taken place on a one-time, ad hoc basis across the country. One example was a partnership with Undue and Wayne, Oakland and Kalamazoo counties during 2024 that relieved about $4.5 million in medical debt.
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