Illinois Erases Over $1.1 Billion in Medical Debt for Half a Million Residents

Illinois has taken a significant step towards improving financial well-being for its residents, erasing over $1.1 billion in medical debt for more than 500,000 individuals. The initiative, spearheaded by Governor J.B. Pritzker, aims to alleviate the burden of medical expenses and ensure access to healthcare for all Illinoisans.

Program Details and Impact

The Illinois Medical Debt Relief Program, launched with a focus on affordability, has provided relief to people in all 102 counties across the state. The program utilizes a strategy of purchasing medical debt from providers and then forgiving it. Initial analysis indicates that those who have received debt relief have had an average of over $1,200 in medical debt eliminated. In some cases, individuals have benefitted from relief totaling tens or even hundreds of thousands of dollars, with one resident receiving $300,000 in debt forgiveness [1].

Addressing Affordability and Healthcare Access

Governor Pritzker emphasized the importance of ensuring that individuals do not have to choose between essential healthcare and providing for their families. “No one should be forced to choose between life-saving care and feeding their families, which is why we launched the Illinois Medical Debt relief program,” he stated [1]. Lieutenant Governor Juliana Stratton added that healthcare is a human right and affordability is central to that promise, stating, “No one should ever delay care because of cost or face financial ruin simply because they got sick” [1].

Previous Debt Relief Efforts

This latest announcement builds upon previous efforts to address medical debt in Illinois. In February 2025, the program abolished over $220 million in medical debt for approximately 170,000 additional individuals, bringing the total relieved debt to over $345 million for nearly 270,000 Illinois residents [2]. The average amount of debt abolished per person during that round was nearly $1,300 [2].

Eligibility Criteria

Individuals do not need to apply to receive debt relief. To be eligible, residents must have a household income at or below 400% of the federal poverty level, or have medical debts equal to 5% or more of their annual household income [3].

Looking Ahead

Governor Pritzker’s announcement comes ahead of his State of the State and proposed budget address, signaling a continued commitment to affordability initiatives. The program is administered by the Illinois Department of Healthcare and Family Services.