Millions in Medical Debt Erased for Massachusetts Residents

Nearly 27,000 Massachusetts residents are receiving relief from over $42 million in medical debt, thanks to a collaborative effort between the Atrius Health Equity Foundation, Undue Medical Debt, and the Massachusetts Health & Hospital Association. The debt relief is being automatically applied to qualifying individuals, with letters notifying recipients being mailed this week.

Debt Relief Details

The initiative targets residents with medical debt that constitutes at least 5% of their annual income, or those earning at or below four times the federal poverty level. Recipients did not need to apply for the assistance; eligibility was determined through a “soft inquiry” into credit history, according to a sample letter from Undue Medical Debt.

Geographic Distribution of Relief

The debt relief is distributed across several Massachusetts counties, including:

• Barnstable County: 19,900 residents
• Plymouth County: 1,860 residents
• Middlesex County: 1,400 residents
• Additional recipients reside in Bristol, Dukes, Essex, Nantucket, Norfolk, and Suffolk counties.

How the Program Works

Undue Medical Debt acquires past-due medical debts for a fraction of their face value from hospitals, health systems, and physician groups. They then erase the debt for individuals who meet specific income-based criteria. According to the Atrius Health Equity Foundation, this approach aims to alleviate financial burdens and improve access to care.

Previous and Future Initiatives

A similar program last year resulted in the elimination of $42 million in medical debt for over 25,000 Massachusetts residents. Governor Maura Healey announced plans in January to prohibit medical debt from being reported to credit agencies, further supporting residents facing financial hardship.

The Scope of Medical Debt in Massachusetts

A 2025 survey by the Center for Health Information and Analysis (CHIA) revealed that 13.5% of Massachusetts residents reported paying family medical debt in the past year, even while having health insurance coverage. Common services leading to debt included tests, surgical procedures, chronic condition care, dental work, and emergency care. The survey also found that 53% of those with debt had to reduce savings, 41% were contacted by collection agencies, and 36% resorted to borrowing or using credit cards.

Statements from Key Organizations

“Debt relief for tens of thousands of burdened families is a powerful respite, and we’re eager to continue working with partners in Massachusetts and beyond to lift this barrier to care and center patient needs,” said Allison Sesso, CEO of Undue Medical Debt. Atrius Health Equity Foundation is committed to eliminating health disparities in Eastern Massachusetts.

Undue Medical Debt has acquired an estimated $30 million in medical debt owed by qualifying residents of Eastern Massachusetts, thanks to funding from the Atrius Health Equity Foundation.

Atrius Health Equity Foundation was created in 2022 and is committed to eliminating health disparities in Eastern Massachusetts.