Capitol Fax.com - Your Illinois News Radar » Pritzker announces $72 million in medical debt relief for nearly 53K Illinois residents
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Pritzker announces $72 million in medical debt relief for nearly 53K Illinois residents

Thursday, Nov 14, 2024 - Posted by Isabel Miller

* 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. ​

       

5 Comments »
  1. - Tim - Thursday, Nov 14, 24 @ 11:39 am:

    This is clearly more useful than most state spending and for a really good cause. But I will ask the question. With a 3 billion dollar projected hole, you are paying for this with what? And paying for the pension fix with what? And transportation shortfalls with what? Lots of good causes out there, except for the pension fix. Can’t pay for everything.


  2. - Candy Dogood - Thursday, Nov 14, 24 @ 11:40 am:

    The State of Illinois could just pass a law that requires businesses to pay taxes on medical debt that they sell at the full value of the medical debt instead of being able to claim a loss.

    In the current tax code the medical provider writes off $100,000 in debt and then claims whatever amount they sold it for, even if it was a small fraction of the value of the debt and entity that buys the debt can pursue the full value.

    Why are we allowing the provider to write off the full value when the full amount of the debt is not forgiven?

    Illinois can simply draft a law that requires a medical provider to add back into their Illinois income whatever amount of debt was sold without being forgiven and make the write off for unpaid medical bills require complete forgiveness of the medical bill.

    The State of Illinois doesn’t have to buy medical debt on secondary markets in order to forgive medical debt. They can just make it so that medical providers, hospital systems, etc, either forgive the medical debt to write it off or have to pay taxes on the full value of the debt they sold without writing it off.

    The secondary market for medical debt is 100% predatory and has nothing to do with delivering medical services to people.

    Think Big, Mr. Governor.


  3. - Excitable Boy - Thursday, Nov 14, 24 @ 12:02 pm:

    - They can just make it so that medical providers, hospital systems, etc, either forgive the medical debt to write it off or have to pay taxes on the full value of the debt they sold without writing it off. -

    Talk to the legislature and get the votes, this is the bill that was sent to him.

    Is there anything you don’t complain about?


  4. - lowdrag - Thursday, Nov 14, 24 @ 12:02 pm:

    Why just low-income families? Rich folk can’t have alot of medical debt? Cancer and other high cost diseases don’t know a person’s income!


  5. - Candy Dogood - Thursday, Nov 14, 24 @ 1:41 pm:

    ===Talk to the legislature and get the votes, this is the bill that was sent to him.===

    Unless there’s been a significant and very recent change, I was under the impression that the State employee’s people in the Governor’s office that already perform this job.

    From the Governor’s press statement, “Gov. Pritzker first proposed the medical debt relief program during his FY25 Budget Address.”

    Oh my — it looks like those people did that job in this matter.

    ===Is there anything you don’t complain about?===

    Was this a complaint? There’s a better and more effective way to incentivize business that provide medical services to forgive medical debt before it is sold to the secondary market.

    Some really creative person could even suggest that the additional tax revenues raised by this addition of the full value of sold medical debt could be used to expand this program of buying debt from the secondary market, creating the scenario where tax dollars raised fund a program like this.

    Companies can still sell their medical debt, it just won’t be as much of a tax advantage for them to do so and if the “real value” of their medical debt to a collections agency doesn’t exceed the tax on the full value of it, they won’t sell it.

    A law could also be passed that bars entities from selling medical debt or it can be made a requirement to be a non-profit medical provider.

    But John Oliver didn’t do a whole show on either of these options, so maybe the idea didn’t occur to the Governor’s staff that the State has more authority than just purchasing debt on the secondary market — which essentially anyone can do.


TrackBack URI

Uncivil comments, profanity of any kind, rumors and anonymous commenters will not be tolerated and will likely result in banishment.



* Isabel’s afternoon roundup
* Save the date!
* Energy Storage Can Minimize Major Price Spikes
* Trial gives glimpse into how Madigan managed his members
* Pritzker announces $72 million in medical debt relief for nearly 53K Illinois residents
* AG Raoul warns Mayor Johnson to reverse police reform budget cuts or risk sanctions
* Madigan trial roundup: Defense attacks credibility of ex-ComEd executive
* Senate President puts hold on bill to protect key aquifers from carbon sequestration
* Showcasing The Retailers Who Make Illinois Work
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Trump border czar pick has message for Pritzker: 'Game on'
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller