Connecticut expands medical debt relief to 100,000 more residents: Who is eligible

Yahoo

24-05-2025

More than 100,000 Connecticut residents will soon receive letters notifying them of medical debt relief, according to a community announcement.
Gov. Ned Lamont announced May 21 that the second round of an initiative, launched last year in partnership with the nonprofit Undue Medical Debt, is underway. The program aims to eliminate medical debt for residents who meet specific income criteria.
Undue Medical Debt negotiates with hospitals and other providers to eliminate large portfolios of qualifying medical debt. To qualify, residents must have an income at or below four times the federal poverty level or have medical debt that is 5% or more of their income.
In this round, the state invested $575,000 of American Rescue Plan Act funding. Undue Medical Debt was able to negotiate with a secondary market partner to acquire and eliminate more than $100 million in qualifying medical debt. The first round, which occurred in December, eliminated approximately $30 million in medical debt for 23,000 residents.
Those who have been identified for relief will receive a branded envelope and letter from Undue Medical Debt in the mail over the next several days. (To view a sample of what this letter looks like, click here.)
'Medical debt causes additional anxiety and stress when individuals and families are coping with potentially life-threatening health situations,' Lamont said. 'Over the next few days, more than 100,000 Connecticut residents who have been struggling to pay their medical bills will feel relief when they receive letters in the mail notifying them that their debt has been erased. I am hopeful that additional medical partners will soon sign onto this program to help more Connecticut families through further rounds of this initiative.'
Allison Sesso, CEO and president of Undue Medical Debt, expressed gratitude for the state's continued partnership in providing medical debt relief.
'The erasure of these debts of necessity wouldn't be possible without community-minded leaders like Governor Lamont and his team, who believe medical debt should not be a hindrance to seeking needed care,' Sesso said. 'We look forward to continuing our work in the state so families can seek healthcare with dignity.'
State Rep. Cristin McCarthy Vahey, co-chair of the legislature's Public Health Committee, also praised the initiative.
'Medical debt can be a crippling burden on patients, especially those who are already struggling to make ends meet,' Vahey said. 'Erasing medical debt for an additional 100,000 residents will greatly ease the stress they are facing and will free them up to focus on their health and well-being. Thank you to Governor Lamont and Undue Medical Debt for their leadership on this innovative program.'
There is no application process for this relief, as the debt erasure occurs through the purchase of large, qualifying bundled portfolios of debt from participating partners like hospitals and collection agencies.
Lamont plans to continue partnering with Undue Medical Debt for further rounds of medical debt cancellation. The governor and the Connecticut General Assembly have enacted legislation that makes $6.5 million in ARPA funding available for this initiative.
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This article originally appeared on The Bulletin: Is your CT medical debt being erased? Check your mail this week