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“Combined with our partners here in Cook County, who have erased
$1.5 billion, we have delivered more than $2 billion in relief
to over a million Illinoisans in all 102 counties of our state,
with an average elimination across the state of $1,200 per
patient,” Pritzker said.
The legislation that created the Medical Debt Relief Program for
the state – based on the Cook County program – was signed into
law in July 2024. The state partnered with nonprofit Undue
Medical Debt, formerly known as RIP Medical Debt, committing to
provide $10 million in grants to pay off debts.
Allison Sesso, CEO of Undue Medical Debt, described the act of
erasing debt as taking advantage of the market system.
Sesso explained the way debt can be functionally erased is by
buying it from collections agencies, who sell it at pennies on
the dollar due to the likelihood of the debt not being paid.
“Well, we take advantage of that pricing, but instead of trying
to collect on those debts, we let those people know that we have
used either government dollars or donated dollars, and we are
relieving them of those debts for good,” Sesso said.
Erik Mikaitis, CEO of Cook County Health, noted the debt relief
may help to strengthen the financial footing for Illinois
families.
“Next year as more Medicaid cuts take effect, more individuals
could become uninsured. Safety net systems will face increased
financial strain,” said Mikaitis. “Relieving debt now
strengthens families before further economic pressures hit and
reduces financial vulnerability at a time when the federal
health and social service programs are being weakened.”
Findings from a 2024 study by the National Bureau of Economic
Research suggest that those outcomes may not be as prominent as
suggested by officials.
Researchers found that of the 83,401 relief recipients surveyed,
there was no average impact on financial wellbeing, the future
usage of health care or the wellbeing of patients.
Separately, the study suggested that such relief negatively
affects the repayment of other medical bills.
Cook County officials also announced they plan to continue the
program, despite no longer getting federal stimulus funds from
the 2021 American Rescue Plan.
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