Michigan wipes out $74 million in medical debt for 71,000 residents
Michigan is erasing $74 million in medical debt for more than 71,000 residents.
On Monday, Michigan Gov. Gretchen Whitmer announced the state's second round of medical debt forgiveness.
"Here in Michigan, we believe being sick or getting injured shouldn't mean going broke," Whitmer said. "That's why I'm proud to partner with Undue Medical Debt, so we can erase over $74 million of medical debt for almost 72,000 Michiganders across the state. This action ensures fewer Michigan families must choose between putting food on the table or paying their medical bills, at a time when so many already are struggling with rising costs on the essentials driven by tariffs, cuts to Medicaid, and the Iran War. Let's keep working together to address medical debt in Michigan."
How does the medical debt forgiveness work?
Michigan is working with the national nonprofit Undue Medical Debt, which acquires medical debts owed by those least able to pay.
On average, each dollar donated to Undue Medical Debt settles $100 in medical debt. The organization says it begins by buying large amounts of debt at a discount.
Rather than collecting on the amounts due, Undue Medical Debt says it forgives the balance for the intended beneficiaries. The goal is "freeing them from bills they can't afford."
Medical debt is often cited as a leading reason for bankruptcy, the state officials said.
Who is eligible for the debt forgiveness plan?
To qualify for debt relief, you must earn at or below four times the federal poverty level or have medical debt that equals 5% or more of your annual income.
Those who are having their medical debt erased will receive a letter in the mail from Undue Medical Debt. The letters began hitting mailboxes the week of June 22.
Medical debt will be cleared for thousands of residents in Kent, Ingham, Muskegon, Washtenaw, Macomb, Hillsdale, Lenawee, Genesee, Monroe and Eaton counties, according to the state.
Prior rounds of medical debt forgiveness in Michigan
Michigan previously forgave $144 million in medical debt for more than 210,000 residents in July 2025. The first round of debt forgiveness benefitted individuals in Calhoun, Genesee, Ingham, Jackson, Kent, Lenawee, Macomb, Monroe, St. Clair and St. Joseph counties.
The latest round of debt forgiveness is supported by a $4.5 million 2024 State of Michigan appropriation and ongoing partnerships with Kalamazoo, Oakland, and Wayne counties.
Additional rounds of medical debt forgiveness will take place in the future, according to the state.
