(The Center Square) – Illinois Governor JB Pritzker met with Cook County health officials on Tuesday to announce the elimination of a total of $2.6 billion in medical debt.
$1.5 billion of that was eliminated through the Cook County program.
“Together with our partners in Cook County, we have eliminated $1.5 billion in funding and we have provided more than $2 billion in relief to more than 1 million Illinoisans in all 102 counties across the state, eliminating an average of $1,200 per patient across the state,” Pritzker said.
Legislation creating a medical debt relief program for the state under the Cook County program was signed into law in July 2024. The state has partnered with the nonprofit Undue Medical Debt (formerly RIP Medical Debt) to commit $10 million in grants to pay down the debt.
Undue Medical Debt CEO Allison Sesso described the act of eliminating debt as taking advantage of the market system.
Seso explained that the way to functionally eliminate debt is to purchase it from a collection agency, which sells it at a low price due to the possibility that the debt will not be repaid.
“Well, we took advantage of that pricing, but instead of trying to collect on those debts, we let those people know that we’ve used government funds or donated dollars and we’re permanently forgiving them of those debts,” Seso said.
Cook County Health Department CEO Eric Michaitis noted that debt relief could help strengthen the financial foundation of Illinois families.
“Next year, as more Medicaid cuts take effect, more people may be uninsured. There will be greater financial pressure on the safety net system,” Michaitis said. “At a time when federal health and social service programs are weakened, debt relief now can strengthen households and reduce financial vulnerabilities before further economic stress strikes.”
Findings from a 2024 study by the National Bureau of Economic Research suggest the results may not be as dramatic as officials say.
Researchers found there was no average impact on financial well-being, future health care use or patient well-being among the 83,401 relief recipients surveyed.
Additionally, the study shows that this relief can have a negative impact on reimbursement for other medical expenses.
Cook County officials also announced that despite no longer receiving federal stimulus funds from the 2021 American Rescue Plan, they plan to continue the program.
