HARTFORD, CT (WFSB) – Connecticut’s governor announced that medical debt for 23,000 patients will be eliminated.

Gov. Ned Lamont attended a news conference at 11 a.m. Monday in Hartford to discuss the details.

“Medical debt hits patients at an extraordinarily difficult time when they are dealing with serious health conditions, and it can often stay with them for decades and impact nearly every aspect of their lives,” Lamont said. “This cancellation will reduce the significant emotional burden that this type of debt places on individuals who do not have the means to get out of their debt, particularly those who also suffer from significant medical problems.” This first round will Relief for thousands of Connecticut residents, and I hope that by continuing this partnership with Undue Medical Debt, we can help thousands more Connecticut residents relieve their debt.”

Lamont said that in the coming days, thousands of Connecticut residents will receive a letter in the mail informing them that their medical debt has been partially or fully discharged.

The letter would look like this:

He said the announcement is part of a newly launched partnership between the Lamont administration and a national nonprofit called Undue Medical Debt. The nonprofit uses public investments to negotiate with hospitals and other providers to eliminate large, pooled portfolios of qualified medical debt from individuals and families whose bills are past due.

Lamont said the nonprofit contracts with state and local governments and uses public investments to negotiate with hospitals and other providers to eliminate large, pooled portfolios of qualified medical debt owed by patients whose incomes are four times or less than four times or 400 percent of the federal poverty level or who have medical debt of 5 percent or more of their income.

The current federal poverty level is an annual income of $31,200 or less for a family of four.

The governor said these medical debts cost a fraction of their face value because they are purchased in bulk and belong to those least able to pay.

As part of this first round, the Lamont administration said it invested approximately $100,000 from the federal allocation of American Rescue Plan Act funds, and Undue Medical Debt was able to negotiate with a secondary market partner and a national provider to raise approximately $30 million. Dollars of qualified medical debt available for Connecticut residents.

Lamont said there is no application process for medical debt relief and it cannot be applied for. Instead, residents whose debts are being eliminated will receive a letter from Undue Medical Debt with a logo indicating which debts have been eliminated. Letters under this first round will be delivered via U.S. Mail to Connecticut residents beginning December 23, 2024.

The governor said it is the first of several expected rounds of medical debt elimination under the partnership.

“We are very grateful to the State of Connecticut for this significant investment in medical debt relief and I am pleased that this first round of letters is arriving in time for the holiday season,” said Allison Sesso, CEO and President of Undue Medical Debt . “Debt relief is just one, albeit important, piece of the puzzle to provide emotional and financial relief to families. I am pleased that Governor Lamont has also committed to finding upstream solutions through legislation to ensure that medical debt does not negatively impact an individual’s credit score.”

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