Michigan Forgives $74 Million In Medical Debt For 71,000 Resident

Here's something you don't hear every day. Michigan is about to erase more than $74 million in medical debt, and nearly 72,000 people across the state are benefiting from it.

Michigan Is Forgiving Another $74 Million In Medical Debt

The state announced this week that it's partnering again with Undue Medical Debt, a nonprofit that buys qualifying medical debt from hospitals and collection agencies for pennies on the dollar. The result? Debt disappears without people having to do anything.

The best part is there's no form to fill out, no application process, and no waiting on hold for three hours while listening to terrible elevator music. If you qualify, you'll simply get a letter in the mail letting you know some or all of your medical debt has been forgiven.

Genesee County Residents Included In Latest Round

MLive reports that Genesee County residents are included in the latest round, with about 2,460 people seeing a combined $3.2 million in debt wiped away. Statewide, this latest effort brings Michigan's total medical debt relief to roughly $218 million after another large round of forgiveness last year.

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To qualify, residents generally must be at or below 400% of the federal poverty level or have medical debt equal to at least five percent of their annual income.

More Medical Debt Changes Could Be Coming

Medical debt remains one of the biggest financial burdens for families across the country, and lawmakers in Lansing are still debating additional reforms that could limit interest charges, keep medical debt off credit reports, and expand financial assistance programs.

For now, though, thousands of Michigan residents may want to keep an eye on their mailbox. Most bills arriving there are bad news. This might be one of the rare exceptions.