PRITZKER PUSHES PLAN TO ERASE $1B IN ILLINOISANS’ MEDICAL DEBT
Gov. J.B. Pritzker on Monday stood alongside Cook County Board President Toni Preckwinkle — the architect of the country’s first medical debt relief program involving a local government — to push for a statewide effort to eliminate $1 billion in medical debt.
Beginning with a $10 million appropriation for the fiscal year beginning July 1, Pritzker is hoping lawmakers approve the plan, which he said will provide nearly $1 billion in medical debt relief for an initial batch of 340,000 Illinois residents. If approved, the investment would mark the first year in a multi-year plan.
Preckwinkle created the Cook County Medical Debt Relief Initiative with funding from the American Rescue Plan Act — using $12 million in federal funds with the potential of erasing up to $1 billion in medical debt in Cook County. Cook County in 2022 became the first local government in the nation to enact the program.
“So far, Cook County has abolished more than $348 million in medical debt for over 200,000 Cook County residents since 2022,” Pritzker said. “So in February, during my budget address, I proposed that we take this initiative statewide at a cost of around a penny or so for every dollar of medical debt we eliminate. We have the potential to eliminate billions of dollars of debt and help millions of Illinoisans in the first year alone.”
The state plans to partner with Undue Medical Debt, which was previously called RIP Medical Debt. It’s the same nonprofit used in the Cook County program and in municipalities across the country.
The group contacts hospitals and health systems and negotiates the sale or donation of portfolios of medical debt, which ultimately allows the nonprofit to cancel debts for those who qualify based on financial hardship.
The nonprofit uses private donations to buy up and pay off health care debt either from secondary markets or directly from hospitals. For every $1 donated, $100 of medical debt can be erased.
Preckwinkle said people of color are disproportionately impacted by medical debt, with Black adults being 50% more likely to hold medical debt and Hispanic adults 35% more likely to carry it, compared with white people. She said she has also heard directly from participants about the debt’s psychological burdens of stress and depression.
“They also told us about the relief and gratitude they felt when they finally had their debt abolished. By providing relief to our residents, we’re lifting a heavy burden,” Preckwinkle said.
John Cook, a Cook County resident, is among those whose medical debt was cleared after undergoing emergency heart surgery. He said he couldn’t believe his eyes when he first received a letter about the debt relief program, first thinking it was a scam. Then the letters kept coming, and he knew it was real.
“I think that it’s just great work, President Preckwinkle, that you’ve begun. And now it’s inspired by Gov. Pritzker as well, and this is the direction we should be going in,” Cook said.
Loyola Medicine also announced it is joining the state’s efforts and will forgive $112 million in medical debt, which will impact more than 60,000 Illinoisans.
The statewide program is likely to be included in a budget appropriations measure. Illinois lawmakers have a self-imposed May 24 deadline to approve a budget, but it is likely to stretch into the final days of May.