by Staff Report
HARTFORD, CT — Nearly 40,00 state residents are about to have some or all of their medical debt erased, according to Gov. Ned Lamont.
Lamont on Monday announced residents who have been selected for debt relief will receive an Undue Medical Debt branded envelope containing a letter from Undue Medical Debt in the mail over the next several days. The initiative launched last year launched last year in partnership with the national nonprofit organization Undue Medical Debt to give relief to those who are having difficulties paying medical bills.
“Medical debt can delay healing due to stress and anxiety about how to pay these bills,” Lamont said. “With this latest round of letters being sent out to Connecticut residents, we will have eliminated $198 million in medical debt over the last year. This makes a real difference in the lives of our families, reducing fear and concerns.”
This third round of the initiative is eliminating more than $63 million in medical debt. In total, nearly 160,000 Connecticut residents who’ve been struggling with bills have had $198 million in medical debt eliminated since the initiative began last December.
Under the initiative, Undue Medical Debt leverages investments from the state to negotiate with hospitals and other providers on the elimination of large, bundled portfolios of qualifying medical debt owed by Connecticut patients. Those who qualify must have income at or below four times the federal poverty level — currently $32,150 for a family of four — or have medical debt that is 5% or more of their income. Since these medical debts are acquired in bulk and belong to those least able to pay, they cost a fraction of their face value, often pennies on the dollar, according to Lamont’s office.
Because this debt erasure occurs through the purchase of large, qualifying bundled portfolios of debt from participating partners like hospitals and collection agencies, there is no application process for this relief and it cannot be requested.
Allison Sesso, president and CEO of Undue Medical Debt, said medical debt creates both financial strain and emotional burdens that prevent families from seeking the care they need.
“We’re proud to partner with Connecticut’s community-minded providers who recognize that removing these unpayable debts helps their patients and communities thrive, and we look forward to bringing relief to even more families in the future,” Sesso said.
The first round of the initiative in December 2024 erased approximately $30 million in medical debt for approximately 23,000 people; and the second round in May 2025 erased more than $100 million in medical debt for 100,000 people.
Lamont said the state would continue partnering with Undue Medical Debt for further rounds of medical debt cancellation.