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Michigan Forgives $200M in Medical Debt. Should It Help Prevent Debt Instead
Officials said the second round of relief brings Michigan’s total medical debt forgiveness to more than $200 million since 2024.
On Monday, the State of Michigan announced it will erase over $74 million in medical debt for 71,871 residents, partnering with the nonprofit Undue Medical Debt to provide financial relief.
Governor Gretchen Whitmer initiated this second round of relief, building on last year's program that erased $144 million in medical debt for 210,000 Michiganders struggling with rising costs.
Daniel Lempert, vice president of communication and marketing at Undue, explained the organization relieves $100 of medical debt for every dollar received by purchasing unpaid bills in bulk.
Recipients will receive notification letters in their mailboxes this week, with over 6,600 people in Ingham County among those notified of the debt forgiveness.
Karley Abramson, health policy research associate at the Citizens Research Council of Michigan, warns that front-end policy reforms and the proposed Medical Debt Act remain necessary to prevent future debt accumulation.