Arizona Medical Debt Crisis Eased: Governor Hobbs Announces Millions Erased for Hundreds of Thousands
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Phoenix, AZ – In a important move to alleviate financial burdens for its residents, Arizona Governor Katie Hobbs announced today that millions of dollars in medical debt have been wiped clean for over 352,000 Arizonans. This initiative,a collaboration between the Governor’s administration and the national nonprofit Undue Medical Debt,targets a critical issue impacting a substantial portion of the state’s population,estimated to carry a collective $2.4 billion in medical debt.
Breaking the cycle of Medical Debt
The groundbreaking program leverages funds from the American Rescue Plan Act, a federal initiative designed to support economic recovery. These funds enabled Undue Medical Debt to purchase outstanding medical debt from hospitals and collection agencies at a significantly reduced cost, allowing for the complete cancellation of balances for eligible individuals.
Arizonans who have benefited from this debt erasure will soon receive official notification via mail from Undue Medical Debt. While some letters have already been dispatched,others are expected to arrive in the coming weeks,bringing welcome news to families struggling with healthcare-related expenses.
Eligibility and Impact
The criteria for debt relief are designed to assist those most in need. Eligible individuals are those whose household income falls at or below 400% of the Federal Poverty Level, or who owe medical bills that amount to at least 5% of their annual income. Importantly, there is no application process required for this relief; eligibility is steadfast based on existing data and the debt purchase agreements.
This initiative represents a proactive step by the state to address the pervasive issue of medical debt, which can have devastating consequences on individuals and families, often leading to financial instability and hindering access to further care. By eliminating these burdensome debts, Governor Hobbs’ administration aims to provide a crucial financial reprieve and improve the overall well-being of Arizonans.
