Thousands in Michigan to receive medical debt relief, according to state leaders

Gov. Whitmer announces medical debt relief

The national non-profit purchases medical debt for pennies on the dollar by working with counties, states, donors, and healthcare providers to bring relief to 271,000 Michiganders so far.

DETROIT (FOX 2) - It was a loud round of applause for Allison Sesso, the founder and CEO of Undue Medical Debt, who is easing the crippling burden of healthcare costs for millions of Americans.

Big picture view:

The national non-profit purchases medical debt for pennies on the dollar by working with counties, states, donors, and healthcare providers to bring relief to 271,000 Michiganders so far.

Governor Gretchen Whitmer pointed out that medical debt is the number one cause of bankruptcy.

It impacts 100 million Americans and 700,000 Michiganders.

The lieutenant governor says bipartisan efforts are underway to erase medical debt, but the problem is likely to get worse before it gets better, in part due to President Trump's budget bill just passed by Congress.

By the numbers:

Leaders say $700 billion cut from Medicaid could lead to half a million people losing their healthcare, with 30% of Michiganders getting their health insurance from Medicaid.

Meanwhile, a federal judge just reversed a rule under President Biden that would have kept medical debt from ruining your credit.

They say it's even more important for politicians to work together. State Senator Sarah Anthony says they are proposing five million dollars in the state budget for additional medical debt forgiveness.

What's next:

Michiganders whose debt has been erased will receive a letter notifying them of the good news.