Governor Ned Lamont announced that nearly 40,000 additional Connecticut residents will soon learn that some or all of their medical debt has been erased, marking the third round of the state’s Medical Debt Erasure Initiative. Letters notifying eligible residents are being mailed this week as part of the program, which launched in December 2024 to address the growing burden of medical debt and its impact on health and financial stability.
This latest round eliminates more than $63 million in medical debt, bringing the program’s total to $198 million erased for nearly 160,000 Connecticut residents. The initiative is administered in partnership with the national nonprofit Undue Medical Debt and targets individuals with incomes at or below 400% of the federal poverty level or those whose medical debt equals at least 5% of their income.
The program works by purchasing large portfolios of qualifying medical debt from hospitals and collection agencies at a fraction of face value, allowing debts to be eliminated without requiring applications from patients. Residents selected for relief will receive an Undue Medical Debt–branded letter in the mail, and the relief cannot be requested or appealed.
State leaders say the initiative reflects Connecticut’s broader commitment to improving health outcomes by reducing financial stress that can delay care. Funding for the effort includes $6.5 million in federal ARPA dollars approved by the governor and the Connecticut General Assembly, with additional rounds of debt cancellation planned.
“Medical debt can delay healing due to stress and anxiety about how to pay these bills,” said Governor Ned Lamont, Governor of the State of Connecticut. “With this latest round of letters being sent out to Connecticut residents, we will have eliminated $198 million in medical debt over the last year. This makes a real difference in the lives of our families, reducing fear and concerns. My administration continues to work with other medical providers to help additional families, and I urge all of them to step up and be part of the solution to address the cost of healthcare in Connecticut.”
“I’m grateful to Governor Lamont and Connecticut for their continued leadership in providing medical debt relief to residents across the state,” said Allison Sesso, CEO and President of Undue Medical Debt. “This third round builds on tremendous progress — nearly 160,000 people helped and $198 million in debts of necessity erased. Medical debt creates both financial strain and emotional burdens that prevent families from seeking the care they need. We’re proud to partner with Connecticut’s community-minded providers who recognize that removing these unpayable debts helps their patients and communities thrive, and we look forward to bringing relief to even more families in the future.”
