By William Armstead –
On May 23rd 2025 Connecticut Governor Ned Lamont made the announcement that 100,000+ residents in the state of Connecticut will receive a letter informing them that some or all of their medical debt has been wiped away. This is possible through a partnership Lamont’s administration has with a nonprofit organization called Undue Medical Debt.
Residents whose income is at or below 400% of the federal poverty level ($32,150 for a family of four) or if their medical debt constitutes at least 5% of their annual income, are automatically qualified to receive some form of debt relief without any manual sign-up. Anyone who qualifies will receive a letter in the mail from Undue Medical Debt in the upcoming days.
The state put $575,000 into the American Rescue Plan Act (ARPA) funding, while Undue Medical Debt was able to negotiate with a secondary market partner. As a result, the cancellation of more than $100 million in qualifying medical debt was reached. The first round occurred in December 2024, eliminating about $30 million in medical debt for 23,000 of Connecticut’s residents.
“Medical debt causes additional anxiety and stress when individuals and families are coping with potentially life-threatening health situations,” Governor Lamont said. “Over the next few days, more than 100,000 Connecticut residents who have been struggling to pay their medical bills will feel relief when they receive letters in the mail notifying them that their debt has been erased. I am hopeful that additional medical partners will soon sign onto this program to help more Connecticut families through further rounds of this initiative.”
Governor Lamont plans to continue partnering with Undue Medical Debt so that more rounds of medical debt cancellation will occur in the future. Lamont and the Connecticut General Assembly passed laws that allow $6.5 million in ARPA funding for this plan.