Millions in Medical Debt Erased for Massachusetts Residents

Nearly 30,000 Massachusetts residents are receiving $42.3 million in medical debt relief through a partnership between the Atrius Health Equity Foundation, Undue Medical Debt and the Massachusetts Health & Hospital Association. The initiative aims to alleviate the financial burden of medical expenses for low- and middle-income individuals across Eastern Massachusetts.

Debt Relief Details

Qualifying families will receive letters this week from Undue Medical Debt notifying them that their medical debt is being erased. The debt relief is automatic; residents do not need to apply or take any action to receive the benefit. The average debt per recipient is $1,560.28, with individual amounts ranging from $50 to $100,000.

Who Qualifies for Relief?

Bay Staters were selected for debt relief if their medical debt constitutes at least 5% of their annual income or if they earn at or below four times the federal poverty level, according to the Boston Globe.

Geographic Distribution of Relief

Debt relief is being distributed across several Massachusetts counties, including:

• Barnstable County (19,900 residents)
• Plymouth County (1,860 residents)
• Middlesex County (1,400 residents)
• Bristol County
• Dukes County
• Essex County
• Nantucket County
• Norfolk County
• Suffolk County

The Impact of Medical Debt

Medical debt is a significant financial strain for many Massachusetts residents. A 2025 survey from the Center for Health Information and Analysis found that 13.5% of residents reported paying family medical debt in the past year, even while having health insurance coverage . Common services leading to debt include tests, surgical procedures, chronic condition care, dental work, and emergency care.

The financial consequences of medical debt are substantial, with 53% of those burdened by debt having to reduce savings or withdraw funds, 41% contacted by collection agencies, and 36% resorting to borrowing money or using credit cards.

Partnerships Driving Debt Relief

The Atrius Health Equity Foundation, established in 2022, is committed to closing the gap in life expectancy in Eastern Massachusetts. This initiative builds on a similar effort last year that eliminated $42 million in medical debt for over 25,000 residents. Undue Medical Debt purchases debt in large portfolios for a fraction of its value and then erases it for those most in need. The Massachusetts Health & Hospital Association also contributed to this collaborative effort.

Looking Ahead

Governor Maura Healey announced plans in January to ban medical debt from being reported to credit agencies, signaling a growing commitment to addressing this issue in Massachusetts. This latest round of debt relief represents a significant step toward improving the financial well-being of residents and ensuring access to necessary healthcare.