CONNECTICUT, USA — Nearly 23,000 Connecticut residents will have their medical debt eliminated or mostly cleared, Gov. Ned Lamont's office announced Monday.
This is the first round of a major initiative Lamont's administration launched through a partnership with the national nonprofit organization Undue Medical Debt.
Under this first round, the Lamont administration invested approximately $100,000 from the state’s American Rescue Plan Act (ARPA) funding allocation.
Undue Medical Debt was able to negotiate with a secondary market partner (i.e. collections agency) and a national provider to acquire approximately $30 million in qualifying medical debt for residents, according to Lamont.
There is no application process for this medical debt relief and it cannot be requested. Instead, residents whose debt has been identified for relief will receive a branded letter from Undue Medical Debt indicating which debt or debts have been eliminated. Letters under this first round will be delivered to Connecticut residents through the U.S. mail beginning December 23.
Lamont said his administration intends to continue its partnership with Undue Medical Debt for further rounds of medical debt elimination. Lamont and the General Assembly have worked together to make $6.5 million in ARPA funding, which would be available for this initiative.
In a statement, Lamont said that medical debt comes to patients at an "extraordinarily difficult time" when they're dealing with health ailments, and follows them for decades and impacts "nearly every aspect of their lives."
“This erasure will lift the significant emotional toll that this type of debt has on individuals who do not have the means to get out from under their debt, especially for those who are simultaneously experiencing significant medical problems," Lamont said. "This first round will provide relief for thousands of Connecticut residents, and I am hopeful that by continuing this partnership with Undue Medical Debt, we can help thousands more Connecticut residents get their debt relieved.”
Allison Sesso, the CEO and president of Undue Medical Debt, said the organization is grateful to the state for this "sizable investment" in medical debt relief and that she's glad the first round of letters will land "in time for the holiday season."
“Debt relief is only one, albeit important, piece of the puzzle in removing an emotional and financial burden on families," said Sesso. "I’m very glad that Governor Lamont has also committed to upstream solutions by way of legislation to ensure medical debts do not ne
In addition to this initiative, Governor Lamont recently signed legislation enacting a law that prohibits healthcare providers and hospitals in Connecticut from reporting a person’s medical debt to credit rating agencies for use in credit reports. That new law – which went into effect on July 1, 2024 – was enacted to protect patients who may have otherwise been apprehensive about seeking essential medical care for fear that any inability to pay could negatively impact their credit rating.
---
Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.
Have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iOS: Click here to download
Android: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.
