Connecticut Becomes First State To Wipe Medical Debt For Residents: $1billion In Unpaid Bills To Be Forgiven

 Connecticut's Democratic governor has revealed a drastic plan to wipe out medical debt for state residents - but has not yet revealed how intends to pay for erasing the $1billion bill.

The move would help an estimated 250,000 residents and will be helped with a $6.5 million fund from the American Rescue Plan Act that sought to cancel medical debt, he said.

Households will not have to apply because the contracted agency will work with state agencies to automatically wipe their debts, according to the state.

The state also said that 1 in 10 Connecticut residents have medical debt, which is also the leading source of debt for Americans.

Minnesota and New York state were counted as the states with the lowest amounts of medical debt.

While no states have announced such plans, New York City recently announced a plan to invest $18 million to help erase $2 billion in medical debt for up to 500,000 eligible New Yorkers.

In a similar fashion, Colorado last year passed a law removing medical debt from credit reports, becoming the first state to enact such legislation. 

https://www.dailymail.co.uk/news/article-13039407/Connecticut-state-wipe-medical-debt-residents-1billion-unpaid-bills-forgiven-Americans-not-suffer-twice.html