Arizona erases more than $1 billion in medical debt for nearly 671,000 residents

Gov. Katie Hobbs announced Wednesday that more than $1 billion in medical debt has been erased for nearly 671,000 residents through a partnership with the national nonprofit Undue Medical Debt.

The initiative, which uses no state funds, targets Arizonans who owe at least 5% of their annual income in medical bills or earn at or below 400% of the federal poverty level.

The nonprofit purchases bundled medical debt portfolios from hospitals and collection agencies for a fraction of their face value.

Letters notifying more than 200,000 additional recipients will begin arriving this week. There is no application process. In fact, those eligible do not need to take any action.

“We are restoring hope, dignity and peace of mind for hundreds of thousands of Arizonans,” Hobbs said in a statement.

Medical debt in Arizona was previously estimated at $2.4 billion.

Related

State’s 1st primary care medical clinic for autism opens in PhoenixPhoenix Children’s uses model patients to teach healthcare workers new skillsBarrow Neurological Institute gets $5M Arizona health grant for brain injury drug trialMayo Clinic in Phoenix again makes U.S. News & World Report list of 20 best hospitalsArizona joins 22-state lawsuit to block federal insurance rule that would gut ACA protectionsAbrazo Arizona Heart Hospital expands capacity to meet Arizona’s growing heart care demand