Illinois has launched a statewide medical debt relief program that has notified about one million residents their medical bills were cleared. The initiative, led by Governor J.B. Pritzker with Cook County and Undue Medical Debt, uses bulk purchases of collection accounts to cancel debts for eligible households—those at or below 400% of the federal poverty level or with medical bills equal to at least 5% of income. Officials and headlines cite totals from roughly $2 billion to $2.6 billion eliminated statewide; critics point to a 2024 NBER study finding limited long-term financial gains from debt cancellation and warn it may not prevent future medical debt.
Illinois Program Cancels $2.6B In Medical Debt, Relieving About 1 Million Residents
Millions in Illinois had their medical debt paid for.
Millions of Americans struggle under medical bills that can block savings, harm credit, and discourage people from seeking care. In Illinois, roughly one million residents have been notified that substantial portions of their medical debt have been cleared through a statewide effort led by Governor J.B. Pritzker in partnership with Cook County officials and the nonprofit Undue Medical Debt.
How the Program Works
The Illinois Medical Debt Relief Program builds on a Cook County initiative. Rather than asking individuals to apply, program partners identified eligible accounts and purchased bundled portfolios of medical debt from collection agencies at steep discounts. Because buyers typically acquire large portfolios at pennies on the dollar, they can cancel balances for many patients.
Eligibility And Scope
Officials say the program targeted Illinois households with incomes at or below 400% of the federal poverty level and those whose medical bills were equal to at least 5% of annual household income. Qualifying residents received letters confirming that their balances had been paid. Public statements and coverage have noted a statewide total described in headlines as $2.6 billion in eliminated medical debt; officials have also cited more than $2 billion in relief overall, including $1.5 billion previously erased in Cook County and an average elimination of about $1,200 per patient.
"In Illinois, we believe healthcare is a human right—and affordability is central to that promise," Lieutenant Governor Juliana Stratton said in a press release. "No one should ever delay care because of cost or face financial ruin simply because they got sick. The Illinois Medical Debt Relief Program is about lifting that burden, strengthening families, and ensuring every Illinoisan can seek the care they need."
Governor Pritzker told The Center Square that, "combined with our partners here in Cook County, who have erased $1.5 billion, we have delivered more than $2 billion in relief to over a million Illinoisans in all 102 counties of our state, with an average elimination across the state of $1,200 per patient."
Criticism And Limits
While debt cancellation provides immediate relief, researchers and critics warn it has limitations. A 2024 National Bureau of Economic Research (NBER) study found that erasing medical debt did not produce measurable improvements in recipients' overall financial wellbeing. Debt relief removes a liability and reduces stress, but it does not raise wages, solve housing problems, or directly increase access to care.
Observers also note that eliminating past balances does not prevent future medical bills. Patients who continue to need care may accumulate new debt, and some people may still avoid seeking treatment to avoid future costs.
What’s Next
The Illinois effort shows how targeted purchases and forgiveness of medical-collection accounts can deliver fast, concrete relief. As other states and counties watch, policymakers will likely debate whether to expand debt-buy-and-forgive programs or pursue structural reforms—such as broader insurance coverage, price transparency, or limits on surprise billing—that address the root causes of medical indebtedness.
Reporting Note: Headlines have cited a $2.6 billion statewide total; officials’ public statements reference both "more than $2 billion" and the Cook County subtotal of $1.5 billion. Figures reflect public announcements from state and county officials and reporting on the program.
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