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Connecticut Governor Ned Lamont announced on Friday that the state intends to become the first in the nation to eliminate medical debt for eligible residents, alleviating approximately $1 billion in medical bills using $6.5 million from the COVID-era American Rescue Plan Act.<\/p>\n
During an appearance<\/a> on ABC News\u2019 \u201cGood Morning America,\u201d Lamont emphasized that individuals burdened by medical bills \u201cshould not have to suffer twice \u2014 first with the illness, then with the debt.\u201d<\/p>\n Lamont\u2019s strategy involves utilizing funds from the 2021 Rescue Plan to engage a nonprofit organization in purchasing medical debt and absolving it at a reduced cost. This process mirrors the practices of for-profit debt collection agencies, with the distinction that the nonprofit organization notifies individuals of the debt cancellation instead of pursuing debt collection.<\/p>\n Under the program, Connecticut residents qualify if their household income does not exceed 400% of the federal poverty line, which is just under $125,000 annually for a family of four. Additionally, residents whose medical debt comprises 5% or more of their yearly income are eligible for debt cancellation.<\/p>\n The initial investment of $6.5 million is projected to relieve the debts of 250,000 residents across the state.<\/p>\n Connecticut\u2019s initiative to cancel medical debt precedes similar efforts<\/a> in New York City, where officials announced last month a commitment of $18 million to erase $2 billion in medical debt for up to half a million qualifying residents over the next three years.<\/p>\n <\/p>\n <\/p><\/div>\n