Connecticut Governor Announces Statewide Medical Debt Cancellation

Connecticut is set to become the first state to cancel medical debt for thousands of residents statewide using $6.5 million in federal COVID-19 recovery funds. The plan, expected to wipe out around $650 million in medical debt for approximately 250,000 people, will be implemented under a state law signed last year. Eligible residents, with household incomes up to 400% of the federal poverty line or medical debt at 5% or more of their annual income, will have their debt canceled without an application process. The state will contract with a nonprofit organization to buy and eliminate medical debt from hospitals, with letters notifying residents of the debt cancellation expected to be sent out by the end of the year.