* NBC Chicago in July…

Illinois Gov. J.B. Pritzker signed a bill this week that will purchase and forgive medical debt for hundreds of thousands of state residents.

According to the text of HB5290, known as the Medical Debt Relief Act, the Department of Healthcare and Family Services (DHFS) will establish a pilot program to discharge medical debt for low-income households, providing relief to more than 300,000 state residents. […]

Under the terms of the bill, individuals will qualify for the program if their household income is below 400% of the federal poverty level, or if they possess medical debt amounting to 5% or more of their annual household income.

The DHFS will be tasked with starting up the pilot program and to review applications by Jan. 1, 2025.

* Governor JB Pritzker today…

The State of Illinois’ Medical Debt Relief Pilot Program has relieved more than $72 million worth of medical debt for 52,745 Illinois residents from across the state. This debt abolishment is the first effort as part of the State’s commitment to erase roughly $1 billion in medical debt across Illinois. Beginning next week, individuals benefitting from medical debt relief will receive letters notifying them that their debts have been eliminated. The average amount of debt abolished per person is $1,349 and the maximum debt abolished for one individual is $242,136.

In order to implement the pilot program, the Illinois Department of Healthcare and Family Services (HFS) engaged Undue Medical Debt as a partner. Undue Medical Debt, a national nonprofit, works with governmental entities across the country on similar debt forgiveness programs, including in Cook County, by helping to facilitate the sale and relief of qualifying medical debt portfolios.

“Earlier this year, I signed legislation to forgive $1 billion in medical debt, and today we’re seeing the positive impact of that commitment for Illinoisans,” said Governor JB Pritzker. “With over $72 million in debt already erased for more than 52,000 Illinoisans, the Illinois Medical Debt Relief Pilot Program represents a promise to help families focus on health and recovery without the weight of financial strain. We’re just getting started, and my administration remains dedicated to bringing this relief to vulnerable communities across the state.” […]

Illinois is one of the first states in the country to address medical debt, a national crisis that weighs heavily on individuals and families. ​ The medical debt relief effort is part of the Administration’s ongoing commitment to improve health equity in Illinois. Medical debt disproportionately affects people of color—Black Illinoisans are 50% more likely to accrue medical debt than their white peers.

The program targets debt held by Illinois residents with a household income at or below 400% of the federal poverty level or whose medical debt is at or exceeds 5% of their household income. Eligible Illinois residents do not need to apply for assistance; impacted households receive notification letters after their debts have been eliminated in a branded Undue envelope. Medical debt relief is source-based, meaning only qualifying medical debts sold from participating partners like hospitals are eligible for relief and consumers cannot request debt relief. Additional waves of relief letters will be announced by the state ahead of their release. […]

Residents in nearly every county in the state had medical debt relieved as part of the inaugural debt buyback. The largest number of debts relieved are in Will County, where a total of 20,832 individuals will receive debt relief. The debt was purchased from debt collection agencies, a national direct provider, and hospitals.

Gov. Pritzker first proposed the medical debt relief program during his FY25 Budget Address. In July, the Governor signed the medical debt forgiveness bill into law, which created the Medical Debt Relief Pilot Program and dedicated $10 million in State funding to acquire outstanding, un-payable medical debt for Illinois residents.

Illinois is also partnering with the Illinois Health and Hospital Association (IHA) on the Medical Debt Relief Pilot Program. IHA provides education and support to its member hospitals, streamlining the collaboration process with Undue Medical Debt. ​ Undue Medical Debt is also actively working to establish partnerships with other providers like physicians’ groups to sell or donate qualifying debt portfolios. ​