Connecticut Announces Historic Medical Debt Cancellation

Governor Ned Lamont reveals plan to eliminate $1 billion in medical debt for 250,000 residents, leveraging American Rescue Plan funds.

Connecticut becomes the first state to cancel medical debt, aiming to clear $1 billion for about 250,000 residents.
Residents eligible for debt cancellation include those with household incomes up to 400% of the federal poverty line or with medical debt constituting 5% or more of their annual income.
The state will use $6.5 million from the American Rescue Plan Act to fund the initiative, with debt cancellations expected to start in June.
The initiative aims to alleviate the financial and emotional burden of medical debt, potentially benefiting the state's economy and residents' well-being.
Other cities and states have also taken steps to address medical debt, with New York City announcing a plan to cancel over $2 billion in medical debt for 500,000 residents.