SPRINGFIELD, Ill. — More than 52,000 Illinois residents will have their medical debt wiped clean as part of the state’s new Medical Debt Relief Pilot Program, officials announced Thursday.
The initiative has eliminated $72 million in medical debt, with individual relief amounts ranging from an average of $1,349 to a maximum of $242,136 per person.
The debt relief marks the first phase of Illinois’ broader initiative to eliminate approximately $1 billion in medical debt statewide. Recipients will be notified by mail starting next week.
The program targets Illinois residents with household incomes at or below 400% of the federal poverty level or those whose medical debt equals or exceeds 5% of their household income. The state partnered with nonprofit organization Undue Medical Debt to implement the program, which purchases qualifying medical debt portfolios at reduced rates from hospitals, collection agencies, and healthcare providers.
Will County saw the largest impact, with 20,832 residents qualifying for debt relief. The initiative has reached residents in nearly every county across the state.
The state allocated $10 million to fund the debt acquisition program. Eligible residents do not need to apply; relief is automatically provided based on qualifying debt portfolios purchased from participating healthcare providers.