Gov. Pritzker Announces Medical Debt Erased For 170,000 Additional Illinois Residents

CHICAGO - Today Governor JB Pritzker joined advocates, healthcare professionals, and patients to announce that the latest round of relief in the Illinois Medical Debt Relief Program has abolished more than $220 million dollars in medical debt for approximately, 170,000 additional individuals statewide. The average amount of debt abolished per person during this round is nearly $1,300, bringing the program’s total erased debt to more than $345 million dollars for nearly 270,000 Illinois residents. This event comes on the heels of the Governor’s State of the State address and FY26 proposed budget, where he laid out the state’s plans to make healthcare more affordable and accessible for Illinoisans.

“We started this program with a simple premise: in a healthy and functioning society, no one should be in financial ruin simply because they get sick,” said Governor JB Pritzker. “This program makes a major impact on the lives of the most vulnerable Illinoisans while also maintaining our commitment to fiscal responsibility with a fantastic return on investment—the gold standard for this kind of work.” ​

"This program is not just about relieving debt—it’s about easing burdens and ensuring that Illinois families never have to choose between their health and financial well-being," said Lt. Governor Juliana Stratton. "Medical debt should never be a barrier to care. By expanding this initiative, we are reaffirming our commitment to health equity and making it clear that access to healthcare is a right, not a privilege."

The Medical Debt Relief Program provides a life-changing benefit for impacted Illinois residents for an extraordinary return on the State’s investment. Every one dollar spent on medical debt buyback and relief programs erases approximately $170 in medical debt for patients. In total, the state has spent approximately $2 million on the program to relieve a total of $345 million in debt for Illinois residents.

Governor JB Pritzker launched the initiative in 2024 with the goal of relieving $1 billion of debts over several years. The state’s proposed FY26 budget includes a $15 million appropriation from the Medical Debt Relief Pilot Program Fund to continue acquiring outstanding, un-payable medical debt for Illinois residents through the program.

Continued support for this program in the proposed FY26 budget is aligned with Governor Pritzker’s commitment to investing in initiatives that have a positive impact on Illinois’ working families while maintaining the state’s commitment to fiscal responsibility. In addition to continued support for medical debt relief, Governor Pritzker is also proposing efforts to regulate Pharmacy Benefit Managers (PBMs), which will lower prescription drug costs and protect independent pharmacies; expand the Healthcare Protection Act to make care more accessible; and further enshrine reproductive access into Illinois law. ​ ​ ​

“I have been so touched to hear the stories of families whose medical debt was relieved during the first round, and how big of a difference this debt abolishment can make,” said Elizabeth M. Whitehorn, Director of the Illinois Department of Healthcare and Family Services, which administers the program. “We’re very excited to announce the latest round and look forward to additional rounds that will provide economic relief for so many Illinoisans.”

"As one of the first states in the country to tackle medical debt, Illinois has taken a monumental step toward improving health equity by assisting with burdensome debt weighing on residents across our state," said State Senator Mike Simmons (D-Chicago). "When someone has medical debt, they are less likely to seek out medical care that could improve or save their life – a decision no one should have to make. I am proud to have championed this legislation forward into action and I am thrilled Illinois is providing relief to residents while improving the health of our communities in the long run."

"Absent us once and for all acknowledging that healthcare is a human right and not a commodity, preventing medical debt from ruining a family's finances is simply the right thing to do,” said Rep. Kelly Cassidy (D-Chicago). “I'm thankful to Governor Pritzker for prioritizing this critical support for working families."

“I had a liver transplant 6 years ago. I was able to take care of a lot of the initial debt, but not all of it,” said Lori Lighthall of Algonquin, one of the first round beneficiaries of the medical debt relief program. “I also have some continuing care and meds that get pricey. I do my best, but this gift is so appreciated! I cannot thank you enough for helping me.”

The program targets debt held by Illinois residents with a household income at or below 400% of the federal poverty level or individuals whose medical debt is at or exceeds 5% of their household income. Eligible Illinois residents do not need to apply for assistance. The latest round of recipients were notified by mail of their relief. Residents in more than 100 Illinois counties have had medical debt relieved as part of the latest round of debt relief buyback. Notification letters for the latest group of the recipient will be issued next week.

Illinois is one of the first state governments in the country to address medical debt, a leading cause of bankruptcy for American families, and 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.

HFS is working with Undue Medical Debt, a national nonprofit, to administer the program. More information about Undue is available here.

We are grateful to partner with the state of Illinois on this impactful medical debt relief program,” said Courtney Werpy Story, Undue Medical Debt Vice President of Government Initiatives. “By tackling medical debt at a statewide level, we can work with a wide range of healthcare providers—hospitals, health systems, and more—who see the value of this program in both supporting their community benefit initiatives and easing the financial burden on patients. Our hope is that this relief not only helps families but also encourages people to re-engage with the healthcare system. We look forward to more medical debt relief for Illinois residents and drawing attention to this pressing crisis that is burdening an estimated 100 million families.”

HFS is also working closely 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 and HFS.

In addition to the state completing another round of medical debt relief, hospitals have signed on to participate and provide medical debt relief for their patients for future rounds. The program has partnered with a number of hospitals and health systems across the state to purchase debt. Among the institutions taking part and helping to provide debt relief for their patients are the University of Chicago Medical Center, Advent Health, Mount Sinai Hospital and Loyola Medicine.

“IHA thanks Governor Pritzker for his commitment to providing access to affordable healthcare and protecting Illinois patients,” said Illinois Health and Hospital Association (IHA) President and CEO A.J. Wilhelmi. “The IHA and Governor Pritzker addressed a key driver of medical debt last legislative session by banning the sale of junk health insurance plans, which all too often left patients responsible for their entire medical bill. As we work with Governor Pritzker to tackle the medical debt crisis in Illinois, we must do so at the root, by ensuring that all individuals are enrolled in comprehensive coverage which closes the financial gap between what their insurance pays and what their plan requires patients to pay out of pocket.”

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