Connecticut Cancels Medical Debt: Good News for Residents

Connecticut to Cancel $6.5 Million Worth of Medical Debt for 250,000 Residents

Connecticut is taking a groundbreaking step to become the first state to cancel medical debt for eligible residents. Governor Ned Lamont announced this initiative, which aims to alleviate the financial burden on citizens affected by medical debts.

This ambitious plan will be made possible through an investment of $6.5 million from the funds of the American Rescue Plan Act. According to Governor Lamont, the state plans to erase approximately a billion dollars in debt during the current year.

This strategic approach will help maximize the impact of the investment and reach a greater number of residents in need. The eligibility criteria for the program are inclusive, covering those whose family incomes do not exceed 400% of the federal poverty threshold.

It is estimated that around 250,000 residents will directly benefit from this initial investment. This determined approach by the state not only seeks to alleviate the financial burden on families but also aims to make a positive impact on a quarter of a million lives.

Notably, eligible households will not need to file individual applications. The contracted agency will work directly with state agencies to automatically eliminate medical debts for those who meet the established criteria. This efficient approach ensures that relief reaches those in need quickly and effectively.

This move by Connecticut highlights the state’s commitment to addressing the issue of medical debt and providing tangible relief to affected families. As medical debt remains a significant source of collection debt for Americans, initiatives like these are crucial in providing financial assistance and support to communities.