Lansing, Michigan – Nearly 10,000 Michigan residents are getting an unexpected financial reset this week, with more than $21 million in medical bills being wiped away through the state’s latest debt-relief effort.
The third round brings Michigan’s total medical debt forgiveness through its partnership with nonprofit Undue Medical Debt to more than $221 million, as state officials continue targeting bills that can follow families long after an illness, emergency or hospital stay.
Gov. Gretchen Whitmer announced that 9,767 Michiganders are included in the latest round. Those receiving relief will begin getting letters in the mail this week explaining which debts have been eliminated. Recipients do not need to apply or take any action.
“In Michigan, no one should go broke trying to pay for the care they need,” Whitmer said.
“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.”
Michigan contracted with Undue Medical Debt to purchase qualifying medical debt from health care providers and collection agencies for a fraction of its original value. According to the state, every $1 provided to the nonprofit can erase about $100 in medical debt.
The debt included in this round came from local hospitals that chose to remain anonymous. The hospitals participated as part of efforts to improve access to care and provide community benefits.
Eligibility is based on financial hardship. People qualify if their household income is at or below 400% of the federal poverty level, roughly $100,000 annually for a family of three, or if their medical debt represents at least 5% of their yearly income.
Residents cannot directly request the relief because the process depends on providers making qualifying debt available for purchase.
The current and previous rounds were supported by a $4.5 million state appropriation approved in 2024. Whitmer has also called for broader protections, including limits on medical-debt interest, keeping medical debt off credit reports, requiring hospital financial-assistance programs and preventing liens or foreclosures tied to medical bills.
More rounds of debt cancellation are expected through Michigan’s partnership with Undue Medical Debt.
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The nonprofit, formerly known as RIP Medical Debt, says it has erased nearly $50 billion in medical debt for more than 31 million families nationwide since its founding in 2014. More information about the organization and its process is available at https://unduemedicaldebt.org/faq/.