Connecticut Governor Lamont Unveils Historic $650 Million Medical Debt Cancellation 

By Consumers for Quality Care, on February 21, 2024

In a historic move, Connecticut Governor Ned Lamont has announced the cancellation of approximately $650 million in medical debt for 250,000 residents, making Connecticut the first state to provide such sweeping relief.  

This groundbreaking initiative, as reported by CNN, addresses the financial strain caused by unforeseen health care expenses and underscores the state’s commitment to supporting its residents. 

“It’s a debt that you had no control over. It’s not like you overspent. You get hit by a health care calamity,” said Governor Lamont. He emphasized that this effort would bring tangible changes for residents, freeing them from financial burdens and enabling them to move forward with their lives. 

Under the initiative, Connecticut residents are eligible for relief if their medical debt amounts to 5 percent or more of their annual income, or if their household income doesn’t exceed 400 percent of the federal poverty level Lamont announced that eligible residents need not apply for this relief. All eligible residents, the Governor says, should receive notifications by this summer confirming that their debts have been eliminated. This initiative will be felt statewide​,​ as more than 1 in 10 Connecticut residents have medical debt in collections.  

The urgency of this matter cannot be overstated. According to the White House, medical debt has become the biggest source of debt in collections, surpassing credit cards, utilities, and auto loans combined. Connecticut’s plan to cancel medical debt was made possible by a collaboration with RIP Medical Debt, a nonprofit organization that specializes in purchasing and eliminating medical debt for consumers across the country. 

CQC applauds efforts to lessen the harms of medical debt for consumers and urges lawmakers and the Biden administration to enact policies that will protect consumers from crushing medical debt.