Jessica Mathews / news@whmi.com


Governor Gretchen Whitmer announced a third round of medical debt relief - totaling over $21 (m) million for 9,767 Michiganders.

Recipients will receive letters starting this week.

The State of Michigan has now provided more than $221 (m) million in relief through each round of debt forgiveness through non-profit, Undue Medical Debt.

Governor Whitmer said "In Michigan, no one should go broke trying to pay for the care they need. I’m proud to continue to partner with Undue Medical Debt to erase over $21 million of medical debt for almost 10,000 Michiganders across the state. This action ensures fewer Michigan families have to choose between putting food on the table or paying their medical bills, especially when so many already are struggling with rising costs on the essentials due to DC Republicans’ tariffs, cuts to Medicaid, and their Iran War. Let’s keep working together to reduce medical debt in Michigan.”

Lt. Governor Garlin Gilchrist II commented “This relief gives thousands of people across our state a chance to move forward with greater peace of mind and financial security. Medical debt can keep Michiganders from getting ahead, making it harder to put food on the table, or get the care they need before a health problem gets worse. I will keep standing tall to protect and expand access to quality, affordable health care because every Michigander deserves the opportunity to live a healthy life and build a brighter future.”

The State of Michigan has contracted with the national nonprofit, Undue Medical Debt, with the goal of putting money back in Michiganders’ pockets by erasing medical debt for people across the state.

On average, one dollar given to Undue Medical Debt relieves $100 of medical debt. The debt was sourced from local hospitals, which wish to remain anonymous but are committed to community benefit and making healthcare accessible.

As the cost of health care continues to skyrocket, Governor Whitmer said she remains “committed to keeping costs low for Michiganders, so they can get the care they need without breaking the bank”.

Pamala, Michigan debt relief recipient had nearly $700 relieved. She said “The debt that was erased was from when my son had pneumonia. He had to have X-Rays done to confirm it. I’m so thankful that this debt has been paid off. I am an in-home caregiver for my autistic niece. I’m paid through a local program, but she only qualifies for 10 hours of care a week. I have been called countless times from the collection [company] to pay off this debt. We are a family of 6 and earn well under the poverty line. So, to not have this weighing on myself and my family is a blessing. Thank you so much!”


A release states the following:

Impact of Medical Debt Abolishment

Medical debt often results from unplanned and unexpected illnesses and accidents. About half of adults in the United States have difficulty in paying their health care bills. In many areas and for many reasons, people remain uninsured and those who are insured receive expensive bills after receiving care.

Across the U.S., medical debt is the number one cause of bankruptcy, and it affects hundreds of thousands of Michiganders who have to choose between paying their medical bills or putting food on the table. Relieving Michiganders of the burden of medical debt will help to stop people from skipping or delaying medical care because of cost-related fears and support people living healthier lives.

Undue Medical Debt is a national nonprofit organization dedicated to erasing medical debt for Americans across the country by purchasing qualifying medical debt in bulk for pennies on the dollar from providers like hospitals and physicians’ groups as well as collection agencies. The partnership between Undue Medical Debt and the State of Michigan will support hundreds of thousands of Michiganders, giving them a lifeline to free themselves of the burden of medical debt.

Those who qualify for medical debt relief earn at or below 400% the federal poverty level, (around $100k/year for a family of three), or have medical debts that equal 5% or more of their annual income. These are the only criteria for relief. This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief cannot be requested and is source-based, depending on community-minded providers like hospitals who choose to engage. Those benefiting from medical debt relief will receive an Undue branded letter in the mail starting this week. There is no action required from recipients, the letters simply inform them of debt relief details and encourage them to share their stories.

Fighting to Reduce Medical Debt

The Whitmer-Gilchrist administration is committed to reducing medical debt for Michiganders across the state and putting more money back in people’s pockets. Today and previous rounds of medical debt erasure have been supported by a $4.5 million 2024 State of Michigan appropriation. In 2026, Governor Whitmer signed a balanced, bipartisan budget protecting core Medicaid services for Michiganders.

In her 2026 State of the State address, Governor Whitmer called on the legislature to take action to ease the burden of medical debt:

1. Capping interest rates on medical debt.
2. Preventing medical debt from showing up on credit reports.
3. Requiring hospitals to set up financial assistance programs for patients.
4. Banning liens or foreclosures on homes because of medical debt.

Through the State of Michigan’s partnership with Undue, more rounds of medical debt forgiveness will take place in the future.

Photo: ChatGPT