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Connecticut Gov. Ned Lamont proposes eliminating medical debt for thousands of residents

Connecticut could become first state to cancel medical debt for thousands
Connecticut could become first state to cancel medical debt for thousands 00:49

HARTFORD, Conn. -- Connecticut could soon become the first state to cancel medical debt for thousands of residents.

Gov. Ned Lamont says the legislative proposal would eliminate around $650 million in medical debt for about 250,000 residents.

The governor says the state would contract a nonprofit that buys medical debt and eliminates it at a reduced cost. He talked about who qualifies on CNN.

"Mainly, it's working families, folks earning up to about $125,000 a year who are paying 5% of their income in bad debt or medical debt expenses. Trying to liberate them a little bit. We're now contracting with the not-for-profit. They'll be going to the hospitals, seeing how much of this debt we're able to write down. We're doing this in association with the hospitals," Lamont said.

Lamont says $6.5 million in unused COVID funds would help pay off the debt.

The governor plans to include his proposal in a budget announcement next week.

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