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More than $144 million in medical debt is being eliminated for more than 200,000 Michigan residents.
Gov. Gretchen Whitmer announced the relief as the “first wave” of debt erasing through a partnership with the national nonprofit Undue Medical Debt. The state allocated $4.5 million in its 2024 budget to help relieve low-income residents from crippling medical debt.
Undue Medical Debt partners with government organizations and buys qualifying medical debt in bulk for pennies on the dollar from hospitals, physicians’ groups and collection agencies. On average, one dollar donated to the nonprofit relieves $100 of medical debt.
Recipients from the latest debt elimination were spread throughout the state, though the first wave was focused on the southeast part of the state. They’ll receive a notice letter from Undue Medical Debt.
The top 10 jurisdictions by debt reduction included:
- Macomb County: 20,756 residents, $13.5 million
- Jackson County: 11,275 residents, $9.68 million
- Kent County: 9,563 residents, $8.73 million
- Genesee County: 10,800 residents, $8.53 million
- Ingham County: 16,845 residents, $7.18 million
- Monroe County: 9,199 residents, $5.88 million
- St. Clair County: 6,758 residents, $4.24 million
- Calhoun County: 7,545 residents, $3.91 million
- Lenawee County: 4,237 residents, $3.56 million
- St. Joseph County: 5,514 residents, $2.83 million
“Here in Michigan, we believe being sick or getting injured shouldn’t mean going broke,” Whitmer said in a prepared statement.
“This action ensures fewer Michigan families have to choose between putting food on the table or paying their medical bills, at a time when so many already have to make hard choices due to Republican cuts to Medicaid.”
Eligible residents are four times or more below the federal poverty level, and/or have medical debt that equals 5% or more of their annual income. The federal poverty level is based on household income, set in 2024 at about $15,000 for an individual, $20,440 for a family of two, and $31,200 for a family of four.
Residents cannot request debt elimination. If chosen, they’ll receive an Undue branded letter in the mail this month. No additional action is required.
Related: Kalamazoo County erases $2.5M in medical debt for 7,000 residents
Officials estimated one third of adults in the U.S. have a difficult time paying their health care bills. Medical debt is the No. 1 cause of bankruptcy.
Whitmer’s office called the debt forgiveness a gamechanger for families impacted by federal funding cuts approved by Congress and President Donald Trump via the “Big Beautiful Bill.”
Individual counties have previously partnered with Undue Medical Debt to eliminate medical debt, including $89 million for 48,000 residents in Kalamazoo, $25 million for 40,000 people in Muskegon, and $27 million for 46,000 people in Wayne County.
Undue Medical Debt, previously known as RIP Medical Debt, was founded in 2014 by former debt collection executives. For more information, visit unduemedicaldebt.org
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