Economy

How states are tackling the crisis of medical debt

More than a third of American households had medical debt in 2024.
North Carolina Gov. Josh Stein, center, flanked by Health and Human Services Secretary Dr. Dev Sangvai, left, and Undue Medical Debt Vice Chair Jose Penabad, speaks about the elimination of medical debt through an initiative involving hospitals and Medicaid at the Executive Mansion in Raleigh, N.C., Monday, Oct. 13, 2025. (AP Photo/Gary D. Robertson)

More than 97,000 Connecticut residents received welcome news earlier this month when Gov. Ned Lamont’s administration told them nearly $315 million in medical debt had been erased.

The state has canceled more than $513 million in medical debt under Lamont’s initiative, part of a partnership with the nonprofit organization Undue Medical Debt kicked off in 2024. Connecticut is the most aggressive — but far from the only — state seeking to eliminate medical debt that plagues residents’ credit reports and causes mental anguish.

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