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Arizona Erases Medical Debt for 141,000 More Residents

State ARPA funding powers an automatic program that purchases qualifying medical bills for pennies on the dollar.

Overview

  • Notices will arrive this week to more than 141,000 Arizonans whose medical debt has been canceled.
  • The latest round brings the program’s total to $642 million erased for 485,000 people, according to the governor’s office.
  • Arizona partners with the nonprofit Undue Medical Debt, which buys bundled accounts from hospitals and collection agencies at steep discounts.
  • Eligibility includes incomes at or below 400% of the federal poverty level or medical bills equal to at least 5% of annual income, with no application required.
  • Relief applies only to debts held by participating providers, and the state aims to ultimately cancel up to $2 billion affecting 1 million residents.