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(HARTFORD, CT) – Governor Ned Lamont today announced that nearly 40,000 Connecticut residents will receive letters in the mail this week informing them that some or all of their medical debt has been erased under an initiative the Lamont administration launched last year in partnership with the national nonprofit organization Undue Medical Debt to give relief to those who are having difficulties paying medical bills.

This third round of the initiative is eliminating more than $63 million in medical debt. In total, nearly 160,000 Connecticut residents who’ve been struggling with bills have had $198 million in medical debt eliminated since the initiative began in December 2024.

“Medical debt can delay healing due to stress and anxiety about how to pay these bills,” Governor Lamont said. “With this latest round of letters being sent out to Connecticut residents, we will have eliminated $198 million in medical debt over the last year. This makes a real difference in the lives of our families, reducing fear and concerns. My administration continues to work with other medical providers to help additional families, and I urge all of them to step up and be part of the solution to address the cost of healthcare in Connecticut.”

Under the initiative, Undue Medical Debt leverages investments from the state to negotiate with hospitals and other providers on the elimination of large, bundled portfolios of qualifying medical debt owed by Connecticut patients. Those who qualify must have income at or below four times (400%) the federal poverty level or have medical debt that is 5% or more of their income. (The current federal poverty level is an annual income at or below $32,150 for a family of four.) Since these medical debts are acquired in bulk and belong to those least able to pay, they cost a fraction of their face value, often pennies on the dollar.

Connecticut residents who have been identified for debt relief will receive an Undue Medical Debt branded envelope containing a letter from Undue Medical Debt in the mail over the next several days. (To view a sample of what this letter looks like, click here.)

Because this debt erasure occurs through the purchase of large, qualifying bundled portfolios of debt from participating partners like hospitals and collection agencies, there is no application process for this relief and it cannot be requested.

“I’m grateful to Governor Lamont and Connecticut for their continued leadership in providing medical debt relief to residents across the state,” Allison Sesso, CEO and president of Undue Medical Debt, said. “This third round builds on tremendous progress — nearly 160,000 people helped and $198 million in debts of necessity erased. Medical debt creates both financial strain and emotional burdens that prevent families from seeking the care they need. We’re proud to partner with Connecticut’s community-minded providers who recognize that removing these unpayable debts helps their patients and communities thrive, and we look forward to bringing relief to even more families in the future.”

The first round of the initiative in December 2024 erased approximately $30 million in medical debt for approximately 23,000 people; and the second round in May 2025 erased more than $100 million in medical debt for 100,000 people.

Governor Lamont intends to continue partnering with Undue Medical Debt to enact further rounds of medical debt cancellation. The governor and the Connecticut General Assembly enacted legislation that makes $6.5 million in ARPA funding available for this initiative.