Michigan's Bold Move: $144 Million in Medical Debt Relief for 210,000 Residents

Governor Gretchen Whitmer has unveiled a groundbreaking initiative to erase over $144 million in medical debt for nearly 210,000 residents across Michigan.

This significant relief stems from a collaboration between the state and the nonprofit organization, Undue Medical Debt.

By allocating $4.5 million in the 2024 budget, Michigan has taken a proactive step to alleviate the financial strain caused by overwhelming medical expenses.

“Here in Michigan, we believe being sick or getting injured shouldn’t mean going broke,” stated Governor Whitmer.

“This action ensures fewer Michigan families have to choose between putting food on the table or paying their medical bills.”

Undue Medical Debt specializes in purchasing medical debt in bulk from hospitals and collection agencies at a fraction of the original cost.

On average, every dollar donated to the nonprofit translates into $100 of medical debt relief.

To qualify for this program, individuals must earn four times or less than the federal poverty level or have medical debt that constitutes 5% or more of their annual income.

Recipients are not required to apply; those eligible will receive a letter from Undue Medical Debt informing them of the debt forgiveness.

The initial phase of this relief effort focuses on southeast Michigan, with the top beneficiaries being:

Macomb County: 20,756 residents relieved of $13.5 million in debt.

Jackson County: 11,375 residents relieved of $9.68 million in debt.

Kent County: 9,563 residents relieved of $8.73 million in debt.

Genesee County: 10,800 residents relieved of $8.53 million in debt.

Ingham County: 16,845 residents relieved of $7.18 million in debt.

Other counties benefiting include Monroe, St. Clair, Calhoun, Lenawee, and St. Joseph, collectively seeing millions in medical debt abolished.

“Medical debt affects our friends, neighbors, and families, making it harder to get a job, put food on the table, or access medical care,” noted Lt. Governor Garlin Gilchrist II.

“Today’s forgiveness of over $144 million of medical debt will help over 200,000 Michiganders in communities across our state move forward with their lives.”

Prior to this statewide initiative, individual counties like Wayne, Oakland, and Kalamazoo had partnered with Undue Medical Debt to eliminate millions in medical debt for their residents.

These localized efforts laid the groundwork for the current statewide relief.

Medical debt remains a leading cause of bankruptcy in the United States, with one-third of adults struggling to pay their healthcare bills.

This initiative represents a significant step toward addressing the financial challenges associated with medical expenses in Michigan.

Residents eligible for this relief will receive notification letters in July 2025.

No further action is required on their part to benefit from this program.

For more information, individuals can visit the official website of Undue Medical Debt.