Connecticut is erasing $315 million in medical debt for more than 97,000 residents in the fourth round of a state-backed debt relief initiative, with notifications beginning the week of June 1, 2026. The announcement marks a major expansion of the program that has already canceled over $513 million in debt for 252,000 residents since its launch in December 2024.
Under the program, residents who earn at or below 400% of the federal poverty level—about $132,000 annually for a family of four—or whose medical debt exceeds 5% of their income automatically qualify for relief. The state partners with Undue Medical Debt, a national nonprofit that negotiates with hospitals and other providers to purchase qualifying debt at a steep discount, often for pennies on the dollar.
“Medical debt is a burden carried by families in every Connecticut community, but it disproportionately affects working-class families,” Governor Ned Lamont said in a statement accompanying the announcement. “Connecticut is taking an active role in wiping out medical debt.”
Recipients will receive letters from Undue Medical Debt informing them that some or all of their medical debt has been erased. Importantly, there is no application process—residents cannot request relief, and participation depends on whether their healthcare provider has opted into the program. The state is leveraging $6.5 million in American Rescue Plan Act (ARPA) funding for the initiative through 2026.
The program has grown in four distinct rounds. The first round in December 2024 erased approximately $30 million for about 23,000 residents; the second in May 2025 eliminated more than $100 million for approximately 100,000 people; the third in December 2025 canceled more than $63 million for about 40,000 residents; and the current round adds the $315 million figure.
Connecticut’s approach reflects a growing national trend. North Carolina, New Jersey, Arizona, Rhode Island, and New York City have all partnered with Undue Medical Debt to relieve residents’ medical bills. The nonprofit’s model—purchasing debt in bulk from hospitals and collection agencies—allows states to stretch limited funding further than direct payment programs could.
Allison Sesso, president and CEO of Undue Medical Debt, emphasized the initiative’s impact: “With more than 252,000 people helped and over $513 million in medical debt erased since this initiative began, we’re providing immediate, tangible relief to thousands of families.”
The relief targets low- and middle-income households most vulnerable to medical debt. Research shows that people in worse health, those living with disabilities, and Black Americans are more likely to report medical debt. Many residents carry substantial balances despite having health insurance, often due to high deductibles, copayments, or gaps in coverage that leave them unable to afford assistance programs.
Sources
- Connecticut Governor’s Office — Official press release announcing the fourth round of medical debt erasure for 97,000 residents and $315 million in relief
- CT Mirror — Reporting on the fourth round, program eligibility criteria, and hospital participation details
- Undue Medical Debt — Information on the nonprofit’s partnership model and cumulative impact across all four rounds
- Governing — Coverage of the $513 million total erased and program scale
