State's medical debt relief program off to strong start
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SPRINGFIELD, Ill. (NEXSTAR) — The state started on a new venture last year. Governor JB Pritzker committed $10 million in the last state budget to try and alleviate people’s medical debts.

The investment doesn’t go straight to paying off debts though. Instead, the money was given to the nonprofit Undue Medical Debt. The organization purchases long standing medical debt from hospitals that it has partnerships with.

Since these debts have been in collection for so long, the partner hospitals are often willing to get rid of them for pennies on the dollar, which allows the state’s investment to tackle a much larger amount of debt.

“That’s why our $10 million state investment can turn into $1 billion in relief ultimately,” Director of the Department of Healthcare and Family Services Lizzy Whitehorn said. “But people don’t apply for it. Individuals don’t apply for it. When undue medical debt enters into an agreement with one of these health care providers with the hospitals, the hospital will then send a file with all of their their debts.”

So far, the $10 million from the state has turned into $72 million dollars of medical debt relief. Over 50 thousand people have gotten some form of relief from the investment.

This success is leading Whitehorn to advocate for a similar investment to come in this years budget.

“We fully support and believe in this investment and are so hopeful that it’s going to help so many people across the state of Illinois,” Whitehorn said.

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