The state of Illinois has erased hundreds of millions of dollars in medical debt as part of a pilot program championed by Gov. J.B. Pritzker.
The governor held a press conference at the University of Chicago Medical Center Wednesday, announcing that the state has spent approximately $2 million to erase $345 million in medical debt since the pilot program was launched last year.
According to Pritzker, more than 270,000 Illinois residents have seen their medical debts erased with the program.
“In a healthy and functioning society, no one should fall into financial ruin simply because they got sick. Nobody should be burdened with the kind of debt that changes their lives,” he said.
Pritzker gave thanks to Cook County Board President Toni Preckwinkle, who had inspired him to act with a similar program in Cook County.
“She is the reason I woke up one morning and read a story about the county doing this kind of work and thought ‘if it can be done on a large county basis, why can’t we do it statewide?’ So I really appreciate her,” he said.
The governor also gave thanks to the group Undue Medical Debt, who solicits donations and uses the money to purchase medical debt from hospitals and collection companies, along with the Illinois Health and Hospital Association.
Under provisions of the program, the state purchases bundled medical debt from collectors and hospital networks, often for just pennies on the dollar.
In fact, Pritzker says that the state has spent just $2 million to erase $345 million in debt, a 172-to-1 ratio.
In the governor’s proposed FY 2026 budget, another $15 million has been allocated for the pilot program. The state’s ultimate goal is to erase $1 billion in medical debt, according to Pritzker.
Illinois residents who meet eligibility requirements will be notified by mail if their medical debt is erased. There is no application process to participate in, according to officials. More information on how the system works can be found on Undue Medical Debt’s website.
The governor also gave some low-key criticism of the Trump administration, saying that the government’s emphasis on “efficiency” has been scattershot and has not accomplished the goals it set out to achieve.
“Efficiency isn’t just about cutting programs. It’s about helping people and doing it in the most efficient way, and this is such a great example,” he said. “Making life more affordable is frankly the efficiency I’m focused on.”