Michigan Erases $144 Million Medical Debt for 210,000 Residents

Michigan has initiated a major medical debt relief program, erasing $144 million in debt for over 210,000 residents through a partnership with the nonprofit Undue Medical Debt. The organization buys medical debt at a fraction of its cost and clears it without requiring any action from debtors, sending notification letters to those affected. Governor Gretchen Whitmer emphasized that getting sick or injured should not lead to financial ruin and highlighted the program's importance amid recent federal Medicaid cuts that threaten to increase uninsured rates and medical debt. The relief targets individuals at or below four times the federal poverty level or those whose medical debt exceeds 5% of their annual income. This first round of debt forgiveness follows successful efforts in counties like Wayne, Macomb, and Kent, with plans for more rounds to continue addressing the widespread burden of medical debt in Michigan. Officials noted that alleviating medical debt can prevent people from delaying care due to cost fears, supporting healthier lives statewide.