Stuart-Backed Bill Erases Medical Debt for Over 52,000 Illinois Residents

EDWARDSVILLE, Ill. — A new law created by state Rep. Katie Stuart, D-Edwardsville, has already helped more than 52,000 Illinois families clear $72 million in medical debt, with more relief on
the way.

“Even families that have worked hard, played by the rules, and done everything right can find themselves buried in medical debt because of insurance company gimmicks and red tape,” Stuart said. “That’s debt that holds families back from buying a home, building a business, or pursuing their dreams – and it’s also debt that we as a state can eliminate for just pennies on the dollar. It’s unconscionable that families should bear this burden for trying to stay healthy, so the success of this new initiative is welcome relief for so many.”

Stuart voted to pass House Bill 5290 which created the Medical Debt Relief Pilot Program. The program will eliminate up to $1 billion in medical debt by purchasing old bills from debt collectors and hospitals for just pennies on the dollar. The department recently announced relief for 52,745 residents, totaling $72 million in savings for families with more relief forthcoming.

The program covers residents with a household income at or below 400% of the federal poverty level and those whose medical debt is at least 5% of their household income.

Those eligible do not need to apply for the program. Illinois residents will receive a letter if they are a recipient of the debt relief. Eligible families that received assistance in this first wave had anywhere from $1,000 to, in one case, nearly $250,000 of medical debt erased.

“Erasing medical debt not only relieves Illinois families of an often-crushing financial burden, it also lifts them up and positions them to receive the care they need,” Stuart said. “Debt relief like this can be life changing and benefits everyone by removing a burden from local communities as well as the economy as a whole. I am proud to have supported the legislation that has made Illinois one of the first states in the country to address medical debt on this scale, and I’m not done working to keep Illinois moving forward.”