A national nonprofit organization has eliminated $6.5 million in medical debt for 97,000 Connecticut residents, marking the fourth round of relief through a state-funded program that requires no action from beneficiaries.
Undue Medical Debt (UMD), described as the nation's largest buyer of overdue medical debts, partnered with Connecticut to provide this relief using leftover funds from a COVID-19 relief package combined with money raised through private donations. The organization has previously worked with state governments in Arizona and Maine to address medical debt burdens.
Connecticut residents qualify for debt elimination if they owe medical debt worth five percent or more of their annual income, or if their income is at or below the federal poverty level. Eligible individuals need not apply or take any action—they will simply receive a letter in the mail explaining that their debts have been paid off.
"I was happy to have supported the legislation a few years ago," Rep. Kevin Brown (D), Vernon, told NBC News local affiliate. "I'm glad that the governor is continuing to commit to this. I want to make sure that folks are able to feel comfortable that they can go to the doctor and not have to worry about that medical debt as much as they might have before."
The program operates through a business model that benefits both medical facilities and patients. When hospitals hold claims for unpaid care—sometimes worth tens of thousands of dollars—that patients can only repay in minimal installments, those debts become essentially worthless assets. Legal action to collect remains costly and uncertain.
Undue Medical Debt steps in to purchase these claims for pennies on the dollar, offering hospitals immediate cash payments that allow them to balance their books. For example, the organization might pay $5,000 to acquire a $100,000 debt claim, then forgive that debt entirely rather than attempting collection.
The selection process for debt elimination is deliberately random and indiscriminate, ensuring no favoritism in determining which obligations are erased. This approach mirrors the successful Arizona program, where 352,000 residents received unexpected notification that their medical debts had been eliminated.
The Connecticut program is expected to continue through the end of the year, providing ongoing relief to residents struggling with healthcare costs. The initiative represents a creative use of remaining pandemic relief funds to address a persistent financial burden facing thousands of state residents.
