"Connecticut and New York Lead the Way in Canceling Medical Debt for Hundreds of Thousands"

Connecticut will become the first state to cancel approximately $1 billion in medical debt for eligible residents by leveraging $6.5 million in American Rescue Plan Act funds. The program will automatically wipe medical debts clear for residents whose household income is up to 400% of the federal poverty line or whose medical debt equates to 5% or more of their annual income. This initiative aims to alleviate the burden of medical debt, which is the leading source of collections debt for Americans, and is part of a broader trend of using federal funds to provide medical debt relief across the country.