Democratic Governor Partners With Non-Profit To Wipe Medical Debt

Elections matter! Connecticut Governor Ned Lamont announced this week that nearly 23,000 Connecticut residents who have medical debt will have some or all of it wiped away under the first round of a major initiative through a partnership with the national nonprofit organization Undue Medical Debt.

The nonprofit contracts with state and local governments and leverages public investments to negotiate with hospitals and other providers on the elimination of large, bundled portfolios of qualifying medical debt owed by patients whose income is at or below four times (400%) the federal poverty level or who have medical debt that is 5% or more of their income. (The current federal poverty level is an annual income at or below $31,200 for a family of four.) Because these medical debts are acquired in bulk and belong to those least able to pay, they cost a fraction of their face value.

Under this first round, the Lamont administration invested approximately $100,000 from the state’s allocation of American Rescue Plan Act (ARPA) funding, and Undue Medical Debt was able to negotiate with a secondary market partner (i.e. collections agency) and a national provider to acquire approximately $30 million in qualifying medical debt for Connecticut residents.

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