Nearly 70,000 Massachusetts residents will have more than $38 million in medical debt erased this week through a partnership of nonprofits, according to The Boston Globe. The collaboration involves Undue Medical Debt, the Massachusetts Health & Hospital Association, and the Atrius Health Equity Foundation.
The relief primarily targets low- and moderate-income earners in Eastern Massachusetts, with individual debt cancellations ranging from $5 to $86,000. Recipients will begin receiving Undue Medical Debt-branded letters in the mail this week informing them that their debt has been wiped out.
Program Automatically Selects Patients Based on Income
There is no application process for the relief, and patients cannot request to be included. Instead, the program automatically selects patients whose medical debt can be acquired through partnerships with collection agencies or providers, such as hospitals.
Nearly 70,000 Massachusetts residents can breathe a little easier this week when $38 million of medical debt is wiped out thanks to a partnership between multiple nonprofits, the groups said. https://t.co/thdpgG7y9A
To be eligible, a patient’s medical debt must be 5% or more of their annual income, or the patient must earn at or below four times the federal poverty level. For a family of four, that income threshold is $132,000; for a single person, it is $63,840.
Undue Medical Debt Erases Millions in Past-Due Balances
Undue Medical Debt operates by purchasing large portfolios of past-due medical debt from physicians’ groups, health systems, and hospitals for pennies on the dollar, and then erasing the balances for those least able to pay. The program notes that providers make good-faith efforts to collect the money before the debt is acquired. Debt buyers and collection agencies also provide debt for the program.
Since the partnership began in 2024, it has erased more than $293 million in debt. The initiative is supported by a “blend of health providers and secondary market partners” within the state. This effort comes as state data indicates that medical debt disproportionately affects communities of color and lower-income households, with one in eight residents carrying such debt. In the U.S., medical debt is a primary driver of bankruptcy.
“Medical debt not only impacts families’ long-term financial future, but also makes people reluctant to seek care,” said Dr. Ann Hwang, president of the Atrius foundation.
Terms of Relief
Recipients do not need to take any action to finalize the cancellations.
Allison Sesso, CEO and President of Undue Medical Debt, stated that eliminating this debt ensures that seeking necessary care “doesn’t come at the cost of their economic security and mental health.” Sesso added that for many, a medical emergency or unexpected illness can cause financial hardship that persists long after they leave the doctor’s office, ER or hospital.
About Undue Medical Debt
Established in 2014, Undue Medical Debt has removed nearly $50 billion in medical debt for more than 31 million families across the United States.
