News Summary

Michigan has launched a relief initiative that will eliminate $144 million in medical debt for over 210,000 residents. This program, announced by Governor Gretchen Whitmer, is a collaboration with Undue Medical Debt to tackle the state’s growing problem of medical debt affecting more than 700,000 adults. Eligible residents will receive notification letters, with the initiative designed to promote financial stability and improve healthcare access without the burden of debt.

LANSING, MICHIGAN – The state of Michigan has announced a significant relief initiative, eliminating $144 million in medical debt for over 210,000 residents. Governor Gretchen Whitmer unveiled this program on Thursday as part of a collaborative effort with the nonprofit organization Undue Medical Debt.

The partnership is designed to address the growing problem of medical debt, an issue impacting more than 700,000 adults in Michigan. This staggering number represents more individuals than the combined populations of Grand Rapids, Lansing, and Ann Arbor.

Under this initiative, Undue Medical Debt acquires medical debt at a fraction of its total value, allowing for efficient debt cancellation. The state aims to improve residents’ financial stability, emphasizing that healthcare should not lead to financial ruin.

The cases highlighting the serious consequences of medical debt prompted this initiative, particularly the tragic story of Naqua Atkinson, a 23-year-old who lost her life after delaying necessary dental care due to concerns over accumulating debt. This incident underscores the critical importance of having access to affordable healthcare without the fear of financial pressure.

As part of the program, residents who qualify for debt relief will receive notification letters through the mail. Those with outstanding medical debt equal to or exceeding 5% of their annual income or whose household income is less than four times the federal poverty level may be eligible. For individuals, this means an annual limit of approximately $62,000, and for couples, around $84,600.

The current round of debt cancellation will specifically assist residents from various counties including Calhoun, Genesee, Ingham, Jackson, Kent, Lenawee, Macomb, Monroe, St. Clair, and St. Joseph. This is only the beginning, as additional rounds of debt relief are already planned for the future, reflecting an ongoing commitment to tackling medical debt in the state.

Prior to this new initiative, Undue Medical Debt collaborated with Wayne County starting in March 2024, successfully canceling $42 million in medical debt impacting over 71,000 residents. In total, partnerships this year have resulted in approximately $4.5 million in medical debt relief across several counties.

Allison Sesso, the president and CEO of Undue Medical Debt, has noted that for every dollar spent on purchasing medical debt, they can effectively eliminate over $100 worth of that debt. While this initiative marks a remarkable step toward reducing financial burdens for Michigan residents, it also comes at a time when recent Medicaid cuts made by Congress may exacerbate the ongoing medical debt crisis for many families.

The medical debt relief initiative aims not only to offer immediate assistance to those struggling with financial burdens due to healthcare costs but also seeks to improve overall community health. Studies have shown that medical debt is often a leading cause of bankruptcy, and alleviating this burden can promote healthier choices and access to needed medical services without financial constraints.

Residents are encouraged to stay alert for their notification letters, as these will provide essential details concerning their debt relief status. As the program unfolds, state officials are hopeful for a positive outcome that can lead to prolonged financial relief and improved healthcare access for Michigan families.