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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. 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.
Illinois is one of the first states in the country to eliminate medical debt to improve health equity in Illinois as it weighs on families and individuals across the state. The program targets debt held by Illinois residents whose household income is at or below 400% of the federal poverty level, or whose medical debt comprises 5% or more of their household income.
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.
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