On Monday, December 16, the Connecticut Hospital Association (CHA) joined Lamont Administration officials and healthcare stakeholders for a press conference to announce that the first round of the state’s medical debt relief program will forgive a total of $30 million for nearly 23,000 residents.
Connecticut hospital leaders stood with Governor Ned Lamont, Lt. Governor Susan Bysiewicz, Senator Saud Anwar, and Health Equity Solutions to provide the update.
Through a partnership with the national nonprofit organization Undue Medical Debt, the state aims to cancel a total of about $650 million in medical debt by 2026.
“No one should avoid or delay seeking medical care because of a concern of inability to pay,” said Jennifer Jackson, CEO, CHA. “We also believe very strongly that medical debt should never limit an individual’s economic opportunity. We are opposed to aggressive collection practices and do not engage in them, and … we have long refused to report medical debt to credit agencies.”
Connecticut hospitals and health systems have some of the most expansive financial assistance policies in the nation to ensure all residents — uninsured or underinsured — have access to care. They do this by connecting patients to affordable coverage, coordinating with patients to create reasonable payment plans, and advocating for policies to prevent medical debt in the first place, such as insurance designs that better protect families from unexpected costs and excessively high deductibles.
“We need to work together to reverse the trend of increasing out-of-pocket responsibility for care received, which has grown to the point where it’s unaffordable for a large segment of the population,” said Pat Charmel, president and CEO, Griffin Health.
Connecticut residents whose debt has been identified for relief will receive a branded letter from Undue Medical Debt indicating which debt or debts have been eliminated. Letters are slated to be delivered via U.S. mail starting Monday, December 23.
“This erasure will lift the significant emotional toll that this type of debt has on individuals who do not have the means to get out from under their debt, especially for those who are simultaneously experiencing significant medical problems,” Governor Ned Lamont said.
During the 2024 Legislative Session, CHA submitted testimony supporting a bill prohibiting medical debt from being reported to credit rating agencies, which the governor signed into law. Public Act 24-6, An Act Concerning the Reporting of Medical Debt went into effect July 1, 2024.
Click here to watch the full press conference.