The pilot program aims to eliminate $1B of medical debt for Illinoisans
By BEN SZALINSKI
Capitol News Illinois
A state pilot program designed to erase medical debt for 300,000 Illinois residents has already helped thousands eliminate $72 million of debt, the governor’s office announced Thursday.
The Medical Debt Relief Pilot Program launched on July 1 – the start of the state’s 2025 fiscal year. Since then, it has erased debt for 52,745 residents. Residents whose debt has been forgiven so far will receive letters in the mail next week notifying them they no longer carry the debt.
“The Illinois Medical Debt Relief Pilot Program represents a promise to help families focus on health and recovery without the weight of financial strain,” Gov. JB Pritzker said in a statement. “We’re just getting started, and my administration remains dedicated to bringing this relief to vulnerable communities across the state.”
Lawmakers approved $10 million in this year’s budget with the goal of eliminating $1 billion of medical debt. The state is partnering with the nonprofit Undue Medical Debt, which can buy debt from collection agencies, hospitals and similar entities for just a few cents per dollar. Every $1 collected translates into $100 of debt relief by the nonprofit, which partners with governments on debt forgiveness programs.
Read more: Brushing off concerns of overspending, Pritzker signs $53.1 billion state budget
The state’s pilot program is modeled off a Cook County program, where the county used $12 million of American Rescue Plan Act funds to forgive debt in partnership with the same nonprofit. Thus far, that program has relieved $382 million of medical debt for 213,000 qualifying county residents.
Residents who had their debt erased in the initial round of forgiveness had an average of $1,349 of debt, according to the governor’s office, with one person holding $242,136 of debt. More than 20,000 Will County residents alone have had their debt retired so far.
Illinoisans must meet certain qualifications to be eligible for the program. Residents with a household income at or below 400% of the federal poverty level, or with debt that is 5% or more of their income, can receive forgiveness under the program. Eligible residents do not need to apply for help and will be notified by letters in the mail once their debt has been forgiven.
Medical debt is particularly burdensome on people of color, with Black Illinois residents 50% more likely to suffer from medical debt, according to the governor’s office.
Earlier this year, Loyola Medicine, Undue Medical Debt and Cook County announced another agreement to eliminate $112 million of medical debt for Loyola patients.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
