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Illinois medical debt program cancels $1.4 billion for 694,000

ByDental Info

Illinois says its medical-debt program canceled more than $1.4 billion for over 694,000 residents, exceeding its original target.

Illinois’ Medical Debt Relief Program has canceled more than $1.4 billion in debt for over 694,000 residents in roughly two years, Gov. JB Pritzker announced Oct. 15. The governor’s office said the total exceeded the program’s original $1 billion goal by more than $400 million.

The reported relief reached residents in all 102 counties. More than $300 million in additional debt had been canceled since February 2026, according to the governor’s office.

The $1.4 billion is the face value of debt canceled, not money paid directly to residents or the amount the state spent. People whose accounts are canceled no longer owe that debt.

Relief depends on participating providers

The Illinois Department of Healthcare and Family Services administers the program with Undue Medical Debt. Residents do not apply. Undue identifies eligible accounts in debt portfolios made available by participating hospitals and health systems, and people whose debts are canceled are notified by mail afterward.

To qualify, a person must live in Illinois and meet at least one of two financial tests: household income at or below 400% of the federal poverty level, or medical debt equal to at least 5% of annual household income. Meeting either test does not guarantee cancellation.

A provider must make a portfolio available by selling or donating it to Undue, and an eligible account must be included in that portfolio. As a result, eligibility alone does not mean a person’s debt will be canceled through the program.

State reports relief across every county

The governor’s office reported average relief of more than $1,200 per resident and a largest individual cancellation exceeding $900,000. Those are reported debt amounts, not cash benefits. The office also said more than 5% of residents received relief in 40 counties. In Kankakee County, it reported that 21.5% of the population received relief.

The state committed $10 million to the program, a figure separate from the much larger face value of debt canceled. The governor’s announcement described actual state spending as both less than $10 million and approximately $10 million, leaving the precise expenditure unclear. Capitol News Illinois, republished by WTTW, also reported spending below $10 million.

Pritzker said he was committed to continuing program funding, according to the Chicago Sun-Times, republished by NPR Illinois. That report did not specify a future funding amount or timing. The statewide program’s totals are separate from Cook County’s own medical-debt relief program.

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