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Elizabeth M. Whitehorn, Director

Medical Debt Relief Pilot Program

What is it?

The State of Illinois has committed $10 million to help alleviate the burden of medical debt for Illinois residents. This initiative has the potential to relieve up to $1 billion in medical debt for hundreds of thousands of Illinoisans.

The funding supports the Medical Debt Relief Pilot Program administered by the Illinois Department of Healthcare and Family Services. The program works by purchasing outstanding medical debt owed by low-income Illinois residents from health systems and other providers and forgiving those debts at no cost to the individuals.

The State of Illinois has contracted with Undue Medical Debt, a national 501(c)(3) nonprofit organization, to implement the program. Undue Medical Debt has extensive experience working with state and local governments across the country to relieve medical debt. In Illinois, Undue Medical Debt coordinates with hospitals and healthcare providers to identify qualifying debt and eliminate it using State funds.

Who is eligible?

Individuals are eligible for debt relief if they meet the following criteria:

  • Illinois residents
  • Household income at or below 400% of federal poverty level
  • (For 2024, this amounts to an annual income of up to $60,240 for a one-person household and up to $124,800 for a family of four)
  • OR medical debt that equals 5% or more of household income

How can I apply?

There is no individual application process for the program.

Undue Medical Debt analyzes hospital debt portfolios to identify qualifying accounts. If you have debt at a participating provider and your debt qualifies, your debt will be canceled, and you will be notified by mail – no action is required on your part.

Please note, the Medical Debt Relief Pilot Program can only cancel medical debts if hospitals and health systems in Illinois sell or donate their debt portfolios to Undue Medical Debt.

What other resources are available to me?

Public Benefits: Visit abe.illinois.gov to check your eligibility and enroll in Medicaid or additional benefits.

Hospital-Provided Assistance: Many hospitals and healthcare providers offer financial assistance programs for those who qualify. To explore potential options for debt forgiveness, consider reaching out directly to the provider managing your medical debt.

Support for Medicaid Beneficiaries: If you are enrolled in Illinois Medicaid and are facing a medical billing issue, the Illinois Department of Healthcare and Family Services may be able to assist. Please call 800-843-6154 for assistance or visit your local Family Community Resource Center. Under Medicaid rules, providers cannot bill you for services, and the Department takes these issues seriously.

Legal Aid: For those with coverage through an employer or the marketplace, if you are facing billing disputes, denials of coverage, or unfair insurance practices, the Illinois Attorney General’s Office Health Care Bureau may be able to help. Visit the Attorney General's Health Care Bureau website or call 877-305-5145 for assistance.