Connecticut to erase $63 million in medical debt for 40,000 residents

HARTFORD, Conn. (WFSB) – Nearly 40,000 Connecticut residents will find some good news in their mailboxes this week: their medical debt has been erased.

Gov. Ned Lamont announced Monday that letters are going out to residents informing them that some or all of their medical bills have been eliminated. This third round of the Medical Debt Erasure Initiative is wiping out more than $63 million in medical debt.

Since the program began in December 2024, nearly 160,000 Connecticut residents have had a total of $198 million in medical debt eliminated.

“Medical debt can delay healing due to stress and anxiety about how to pay these bills,” Lamont said. “This makes a real difference in the lives of our families, reducing fear and concerns.”

The state partners with the nonprofit Undue Medical Debt to buy large bundles of qualifying medical debt for pennies on the dollar. To qualify, residents must have income at or below 400% of the federal poverty level or have medical debt that equals 5% or more of their income.

There’s no application process — the debt erasure happens automatically through purchases from participating hospitals and collection agencies. Residents who qualify will receive letters from Undue Medical Debt over the next several days.

The first round erased about $30 million for roughly 23,000 people, and the second round eliminated more than $100 million for 100,000 people. Lamont plans to continue the program using $6.5 million in federal ARPA funding.

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