Governor Whitmer Announces First Round of Medical Debt Forgiveness, Erasing Over $144 Million for Nearly 210,000 Michiganders Across the State

FOR IMMEDIATE RELEASE

July 17, 2025

Contact: press@michigan.gov

Governor Whitmer Announces First Round of Medical Debt Forgiveness, Erasing Over $144 Million for Nearly 210,000 Michiganders Across the State

Money back in people’s pockets delivered as a result of state partnership with nonprofit Undue Medical Debt

LANSING, Mich. – Today, Governor Gretchen Whitmer announced the first round of medical debt forgiveness, totaling over $144 million for nearly 210,000 Michiganders. The State of Michigan has collaborated with the nonprofit, Undue Medical Debt, with the goal of putting money back in Michiganders’ pockets by erasing medical debt for people across the state. On average, one dollar donated to Undue Medical Debt relieves $100 of medical debt. The debt was sourced from local hospitals, which wish to remain anonymous but are committed to community benefit and making healthcare accessible. As the cost of health care continues to skyrocket due to Republican cuts to Medicaid, Governor Whitmer remains committed to keeping costs low for Michiganders, so they can get the care they need without breaking the bank.

"Here in Michigan, we believe being sick or getting injured shouldn’t mean going broke,” said Governor Whitmer. “That’s why I’m proud to partner with Undue Medical debt, so we can erase over $144 million of medical debt for almost 210,000 Michiganders across the state. This action ensures fewer Michigan families have to choose between putting food on the table or paying their medical bills, at a time when so many already have to make hard choices due to Republican cuts to Medicaid. Let’s keep working together—Republicans and Democrats—to address medical debt in Michigan, so more people can get the care they need and put food on the table.”

“Medical debt affects our friends, neighbors, and families, making it harder to get a job, put food on the table, or access medical care,” said Lt. Governor Garlin Gilchrist II. “Today’s forgiveness of over $144 of medical debt will help over 200,000 Michiganders in communities across our state move forward with their lives. Governor Whitmer and I are committed to expanding access to quality, affordable healthcare. Let’s keep working together to build a healthier, more prosperous Michigan.”

“No one should be forced into a cycle of debt because they sought essential medical care,” said state Senator Sarah Anthony (D-Lansing). “That’s why I’m proud to celebrate the result of Michigan’s partnership with Undue Medical Debt, resulting in debt forgiveness for thousands of people in communities statewide, including right here in Ingham County. As Senate Appropriations Chair, I remain committed to this fight—from doubling down on our state investment advancing my bipartisan legislation to provide targeted, meaningful relief for Michiganders struggling to pay their medical bills. Together, we can build a system where healthcare is a right, not a privilege, and where everyone has access to the care they need without fear of financial ruin.”

"I'm grateful to be partnering with the state of Michigan on this transformative medical debt relief initiative, which is bringing much-needed emotional and financial relief to thousands of families," said Allison Sesso, President and CEO of Undue Medical Debt. "Medical debt is a burden that no one chooses — people don't choose to get sick, injured or have a chronic disease. For too many, getting care can quickly turn into financial distress, threatening families' futures. Sadly, the recently passed budget bill in Washington will terminate health insurance for millions, including an estimated 340,000 in this state, making Michigan's investment even more important and serving as a great example of state actions that can be taken to alleviate this burden. We look forward to continued collaboration with Michigan leaders to tackle this pressing crisis."

Impact of Medical Debt Abolishment

Medical debt often results from unplanned and unexpected illnesses and accidents. About one third of adults in the United States have difficulty in paying their health care bills. In many areas and for many reasons, people remain uninsured and those who are insured receive expensive bills after receiving care.

Across the U.S., medical debt is the number one cause of bankruptcy and affects more than 100 million Americans. That includes 700,000 Michiganders who have to choose between paying their medical bills or putting food on the table. Relieving Michiganders of the burden of medical debt will help to stop people from skipping or delaying medical care because of cost-related fears and to support people living healthier lives.

Additionally, given the Republican budget bill will force millions of people off of their health insurance, this round of medical debt will be gamechanger for impacted families. Governor Whitmer is committed to doing everything in her power to keep costs low and quality care accessible for everyone in Michigan.

Undue Medical Debt is a national nonprofit organization dedicated to erasing medical debt for Americans across the country by purchasing qualifying medical debt in bulk for pennies on the dollar from providers like hospitals and physicians’ groups as well as collection agencies. The partnership between Undue Medical Debt and the State of Michigan will support hundreds of thousands of Michiganders, giving them a lifeline to free themselves of the burden of medical debt.

The list below reflects the top 10 jurisdictions receiving relief. While there are recipients statewide, the current round is focused on southeast Michigan. Other areas will see more relief as forgiveness continues.

Those who qualify for medical debt relief are either four times or below the federal poverty level or have medical debts that equal 5% or more of their annual income. These are the only criteria for relief. This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief cannot be requested and is source-based, depending on community-minded providers like hospitals who choose to engage.   Those benefiting from medical debt relief will receive an Undue branded letter in the mail in July 2025. There is no action required from recipients, the letters simply inform them of debt relief details and encourage them to share their stories.

Prior Rounds of Medical Debt Erasure in Michigan

Prior to today’s round of medical debt erasure, Wayne, Oakland, and Kalamazoo counties partnered with Undue to forgive millions of dollars of debt for Michiganders in their communities. The funding was supported by the 2024 budget, including $4.5 million to relieve Michiganders of the burden of medical debt.

Today's erasure of over $144 million is in part attributed to Wayne, Oakland, and Kalamazoo Counties' contributions and partnership with Undue.

Fighting to Reduce Medical Debt

The Whitmer-Gilchrist administration has been committed to reducing medical debt for Michiganders across the state, putting more money back in their pockets. In 2024, Governor Whitmer secured $4.5 million in our balanced, bipartisan state budget to relieve medical debt for hundreds of thousands of people. Earlier this year, during Governor Whitmer’s State of the State address, she asked Republicans and Democrats to work together on bipartisan legislation to reduce medical debt.

Through the State of Michigan’s partnership with Undue, more rounds of medical debt forgiveness will take place in the future.

Keeping Costs Low for Michiganders

In addition to her world to relieve Michiganders of their medical debt, Governor Whitmer has been committed to lowering costs for families across the state. Since taking office, the Whitmer-Gilchrist administration has:

• Rolled back the retirement tax to save 500,000 households an average of $1,000 a year.

• Quintupled the Michigan Working Families Tax Credit to give over 700,000 working families an average tax refund of $3,150.

• Expanded access to free pre-K to every four-year-old while prioritizing families who need it most so every kid can arrive at kindergarten ready to learn.

• Signed bipartisan legislation to put money back in people’s pockets and bring down the cost of car insurance, saving drivers at least $120 per car in 2020.

• Delivered refunds of $400 per vehicle back in the pockets of Michigan drivers.

• Eliminated the tampon tax.

• Announced the MI Open Account Coalition offering low or no-cost financial services, saving eligible families an average of $3,000 a year and helping them build wealth.

• Expanded Michigan’s unemployment benefits for the first time since 2011, putting more money into peoples’ pockets.

• Signed a deal raising the minimum wage for more than 700,000 workers, making Michigan’s earned sick time the best in the country, and providing flexibility for small businesses.

• Proposed a budget continuing retiree and working families tax cuts, pre-K for every four-year-old, expanding the MiABLE program, capping test fees for low-income students, and creating water affordability programs for families struggling with bills.

About Undue Medical Debt

Undue Medical Debt (formerly RIP Medical Debt) is a national 501(c)(3) nonprofit whose purpose is to strengthen communities by erasing financially burdensome medical debt. Founded in 2014 by former debt collection executives, Undue Medical Debt is the leading charitable organization that erases un-payable medical debts. It works tirelessly to end medical debt and ensure a future where everyone can access healthcare without fear.

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