Connecticut Residents Receive a Welcome Lift as Millions in Medical Debt Disappear

Thousands of people in Connecticut are getting wonderful news: old medical bills that once weighed heavily on their lives have been wiped away.

Undue Medical Debt, the nation’s largest purchaser of overdue medical debt, has helped erase about $6.5 million in unpaid hospital bills for 97,000 Connecticut residents. The nonprofit has already worked with state governments in places such as Arizona and Maine, bringing relief to people who may have felt trapped by expenses from past medical care.

This latest round of assistance comes through a Connecticut program that combines remaining COVID-19 relief funds with money raised by Undue Medical Debt through donations. It marks the fourth round of medical debt relief made possible through the effort.

Residents qualify if their medical debt equals 5% or more of their annual income, or if their income is at or below the federal poverty level.

One of the best parts of the program is its simplicity for recipients: no one has to apply. People do not need to fill out forms, make calls, or take any special action. Undue Medical Debt selects eligible debts in a random and neutral way, helping ensure the process is fair and free from favoritism.

The model is built around a practical and compassionate idea. Hospitals may be owed large sums for care already given, but when patients cannot realistically pay those bills except in tiny installments, the debt can become difficult for hospitals to collect. Legal action is costly and uncertain. Undue Medical Debt steps in by purchasing those debts for a fraction of their face value, giving hospitals immediate payment while freeing patients from balances that may have followed them for years.

Arizona used a similar approach with Undue Medical Debt, leading to 352,000 residents receiving letters explaining that their medical debts had been paid off for pennies on the dollar.

The result is a rare kind of win: hospitals improve their books, donors see their generosity multiplied, and families receive the peace of knowing a painful financial burden has been lifted.

The Connecticut program is expected to continue through the end of the year.

“I was happy to have supported the legislation a few years ago,” Rep. Kevin Brown (D), Vernon, told NBC News local affiliate. “I’m glad that the governor is continuing to commit to this. I want to make sure that folks are able to feel comfortable that they can go to the doctor and not have to worry about that medical debt as much as they might have before.”