Gov. Pritzker Announces $72 Million in Medical Debt Relief for over 52,000 Illinoisans

CHICAGO- The State of Illinois’ Medical Debt Relief Pilot Program has relieved more than $72 million worth of medical debt for 52,745 Illinois residents from across the state. This debt abolishment is the first effort as part of the State’s commitment to erase roughly $1 billion in medical debt across Illinois. Beginning next week, individuals benefitting from medical debt relief will receive letters notifying them that their debts have been eliminated. The average amount of debt abolished per person is $1,349 and the maximum debt abolished for one individual is $242,136.

In order to implement the pilot program, the Illinois Department of Healthcare and Family Services (HFS) engaged Undue Medical Debt as a partner. Undue Medical Debt, a national nonprofit, works with governmental entities across the country on similar debt forgiveness programs, including in Cook County, by helping to facilitate the sale and relief of qualifying medical debt portfolios.

“Earlier this year, I signed legislation to forgive $1 billion in medical debt, and today we’re seeing the positive impact of that commitment for Illinoisans,” said Governor JB Pritzker. “With over $72 million in debt already erased for more than 52,000 Illinoisans, the Illinois Medical Debt Relief Pilot Program represents a promise to help families focus on health and recovery without the weight of financial strain. We’re just getting started, and my administration remains dedicated to bringing this relief to vulnerable communities across the state.”

“This initiative brings significant relief to many Illinois families burdened by medical debt,” said Lt. Governor Juliana Stratton. “The Illinois Medical Debt Relief Pilot Program uplifts the well-being of our families while strengthening our commitment to health equity across the state.”

Illinois is one of the first states in the country to address medical debt, a national crisis that weighs heavily on individuals and families. ​ The medical debt relief effort is part of the Administration’s ongoing commitment to improve health equity in Illinois. Medical debt disproportionately affects people of color—Black Illinoisans are 50% more likely to accrue medical debt than their white peers.

The program targets debt held by Illinois residents with a household income at or below 400% of the federal poverty level or whose medical debt is at or exceeds 5% of their household income. Eligible Illinois residents do not need to apply for assistance; impacted households receive notification letters after their debts have been eliminated in a branded Undue envelope. Medical debt relief is source-based, meaning only qualifying medical debts sold from participating partners like hospitals are eligible for relief and consumers cannot request debt relief. Additional waves of relief letters will be announced by the state ahead of their release.

“Medical debt can be crushing for families, and I encourage our hospital partners to participate in this program to help alleviate that burden,” said Acting HFS Director Elizabeth M. Whitehorn. “This program will be life-changing for people across Illinois and continues our momentum toward a more equitable healthcare system where everyone can access quality care.”

Residents in nearly every county in the state had medical debt relieved as part of the inaugural debt buyback. The largest number of debts relieved are in Will County, where a total of 20,832 individuals will receive debt relief. The debt was purchased from debt collection agencies, a national direct provider, and hospitals.

Gov. Pritzker first proposed the medical debt relief program during his FY25 Budget Address. In July, the Governor signed the medical debt forgiveness bill into law, which created the Medical Debt Relief Pilot Program and dedicated $10 million in State funding to acquire outstanding, un-payable medical debt for Illinois residents.

Illinois is also partnering with the Illinois Health and Hospital Association (IHA) on the Medical Debt Relief Pilot Program. IHA provides education and support to its member hospitals, streamlining the collaboration process with Undue Medical Debt. ​ Undue Medical Debt is also actively working to establish partnerships with other providers like physicians’ groups to sell or donate qualifying debt portfolios. ​

“I’m grateful to Governor Pritzker and the state of Illinois for making this ambitious investment in removing the financial and emotional burden of medical debt from tens of thousands of state residents already,” said Undue Medical Debt CEO and president Allison Sesso. “This also wouldn’t be possible without community-minded provider partners like hospitals and physicians’ groups who work with us to ensure medical debt is not a hindrance to ongoing care. We look forward to continuing our work in the state and helping families seek healthcare with dignity.”

"I am proud to have worked with Gov Pritzker to help our neighbors struggling with something that should have never existed: medical debt," said Rep. Kelly Cassidy (D-Chicago). "With his administration's leadership, Illinois continues to put working families first by addressing this significant financial burden."

“I am thrilled that as a result of The Medical Debt Relief Act, 52,000 Illinoisians have received medical debt relief in October alone. Medical debt should never place a burden on families who’ve endured a medical crisis," said Senator Mike Simmons (D-Chicago). "I am proud that we are taking rapid action as a state to wipe out medical debt for families and individuals and support them with a more secure financial future.”

Medical debt is a national crisis that requires all parties to come together to find solutions. The program is currently seeking providers from whom to acquire qualifying medical debt. Undue purchases medical debts of those with a demonstrated financial need in bundled portfolios at an industry standard rate, which is often pennies or less on the dollar. Learn more here.

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