The initiative leverages public investments to negotiate with hospitals and providers, targeting medical debt portfolios for individuals whose income is at or below 400% of the federal poverty level, or whose medical debt is 5% or more of their income. Currently, the federal poverty level is defined as an annual income at or below $31,200 for a family of four. 

The Lamont administration has invested approximately $100,000 from the state's allocation of the American Rescue Plan Act (ARPA) funding. Undue Medical Debt utilized these funds to negotiate with a secondary market partner and a national provider, successfully acquiring $30 million in qualifying medical debt for Connecticut residents. 

Governor Lamont expressed his commitment to continuing this partnership, with $6.5 million of ARPA funding allocated for further rounds of debt elimination. "Medical debt often strikes at a vulnerable time, posing long-lasting impacts on individuals' lives," Governor Lamont stated. "This initiative will ease the emotional and financial strain for those in need, providing relief to thousands of residents." 

Allison Sesso, CEO and president of Undue Medical Debt, praised the state's investment and highlighted the importance of this relief arriving during the holiday season. Sesso also acknowledged the broader legislative efforts to prevent medical debts from affecting credit scores, ensuring that financial burdens do not deter essential medical care. 

In support of these efforts, Governor Lamont recently signed a law prohibiting healthcare providers and hospitals from reporting medical debt to credit rating agencies, which took effect on July 1, 2024. This legislation aims to protect patients from credit score impacts due to medical debt, encouraging them to seek necessary medical treatment without fear of financial repercussions. 

Through these initiatives, Connecticut is paving the way to provide financial relief and protect the well-being of its residents, addressing the pressing issue of medical debt head-on.