Illinois spends under $10 million to erase $1.4 billion in medical debt

Illinois says its Medical Debt Relief Program has erased more than $1.4 billion in medical bills for over 694,000 residents across all 102 counties, surpassing its $1 billion goal. The state spent less than $10 million to buy qualifying debt, often for pennies on the dollar, and officials say each dollar invested eliminated more than $100 in debt. Recipients received an average of roughly $1,200 in relief, and participation exceeded 5% of residents in 40 counties; eligibility is based on household income or medical debt burden, with no application required. Gov. J.B. Pritzker and other state officials say the relief can ease financial strain after illness or injury. However, research cited by one report suggests debt cancellation may not improve recipients’ credit scores in many cases, in part because medical debt is increasingly absent from credit reports.