Michigan Erases $21M More in Medical Debt, Third Round
Michigan has eliminated more than $21 million in medical debt for 9,767 residents in its third round of relief through a partnership with nonprofit Undue Medical Debt, according to an Oct. 14 release from Gov. Gretchen Whitmer's office. The effort brings the state's total debt relief to over $221 million. Debt was purchased from anonymous local hospitals and collection agencies, with every $1 in funding eliminating about $100 in debt. Residents earning at or below 400% of the federal poverty level, or whose medical debt exceeds 5% of annual income, qualify automatically and will receive notification letters starting the week of Oct. 14; no application is required. The initiative is funded by a $4.5 million state appropriation from 2024, and Michigan plans further rounds.