Gov. J.B. Pritzker met with Cook County health officials to announce that $2.6 billion in medical debt has been erased in Illinois, with $1.5 billion of that wiped out through Cook County’s program. Pritzker said the combined efforts have delivered more than $2 billion in relief to over a million Illinoisans across all 102 counties, averaging about $1,200 per patient. The Medical Debt Relief Program the state created—modeled on Cook County’s plan—was signed into law in July 2024, and Illinois partnered with nonprofit Undue Medical Debt (formerly RIP Medical Debt), committing $10 million in grants to pay off debts.
Allison Sesso, CEO of Undue Medical Debt, explained how it works: debt-buying firms sell old medical debt to buyers for pennies on the dollar because it’s unlikely to be paid, and Undue uses government or donated dollars to buy those accounts and then cancel them instead of collecting. It’s basically taking advantage of that market pricing to erase balances for people who otherwise would still see those debts on their records.
Cook County Health CEO Erik Mikaitis said the relief can help strengthen families’ finances before upcoming Medicaid cuts and other pressures that could leave more people uninsured. But a 2024 National Bureau of Economic Research study found no average impact from such relief on financial wellbeing, future health-care use, or patient wellbeing among 83,401 recipients, and even suggested it can reduce repayment of other medical bills. Despite losing federal ARP stimulus funds, Cook County officials said they plan to keep the program going.