Bye Bye Medical Debt

Medical debt is a weighty issue that can leave individuals and families feeling overwhelmed and financially strapped. But recent news from Connecticut and New York may just change that.

Connecticut's Groundbreaking Initiative

Connecticut Governor Ned Lamont recently announced a groundbreaking plan to wipe out approximately $650 million in medical debt for an estimated 250,000 residents. This unprecedented move, fueled by a commitment to equity and financial relief, marks a significant departure from the status quo.

The Eligibility Criteria

Residents whose medical debt comprises 5% or more of their annual income, or whose household income falls within 400% of the federal poverty line, about $125,000 in 2024, are eligible for relief. Best of all, those meeting the criteria don’t need to apply. They’ll simply receive notification of their debt forgiveness via mail.

How It Works

Connecticut and New York are working with RIP Medical Debt, a nonprofit that buys medical debt in bulk from hospitals and debt collectors for pennies on the dollar, and then forgives the amounts.

The Bottom Line.

These states bold move to cancel medical debt not only offers immediate relief for thousands of residents but also sets a powerful example for other states and municipalities grappling with similar challenges. As healthcare affordability continues to be a pressing issue nationwide, initiatives like those in Connecticut, and New York signal a collective recognition of the urgency of addressing medical debt, and will hopefully result in more states joining the efforts.

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