CHICAGO – Gov. JB Pritzker has announced that the Illinois Medical Debt Relief Program has erased nearly $430 million in medical debt during its first year, benefitting 357,800 Illinoisans across all 102 counties, according to a press release. Illinoisans who have received relief saw, on average, over $1,100 in debt eliminated.
In Effingham County, more than $2.3 million in debt has been relieved, spread among 1,811 recipients for an average of more than $1,250 per recipient, according to the state.
“Too many working families are facing real financial uncertainty and higher healthcare costs at the hands of the Trump Administration. Illinois will keep stepping up to ensure the most vulnerable Illinoisans can focus on their health and their families — not on crushing medical debt,” Pritzker said in the release. “The Illinois Medical Debt Relief Program is a critical tool we created to expand healthcare access and affordability and is a strong return on investment for the State that maintains our fiscal footing.”
“In Illinois, we believe healthcare is a right, not a privilege. No one should have to balance their health against their checkbook,” Lieutenant Gov. Juliana Stratton said in the release. “Easing the burden of medical debt strengthens our communities and demonstrates our commitment to health equity.”
Pritzker said that as Illinois expands this relief, the Trump Administration is moving to block states from protecting consumers’ credit reports from medical debt – putting struggling families at even greater financial risk.
One year after the program’s first round of debt erasure, Illinois is on pace to meet Pritzker’s goal of eliminating $1 billion in medical debt over several years. Supported by the Illinois Department of Healthcare and Family Services (HFS), the program reflects the State’s broader commitment to making life more affordable for families.
“One year in, the medical debt relief program has been life-changing for hundreds of thousands of people in Illinois,” HFS Director Elizabeth M. Whitehorn said in the release. “Alleviating this burden allows Illinoisans to focus on other important aspects of their lives, including basic needs like food and rent. We look forward to continuing to partner with more healthcare providers to relieve more debt in 2026 and beyond.”
“Medical debt is more than a financial issue – it’s a barrier to timely care and better health,” Dr. Sameer Vohra, Director of the Illinois Department of Public Health, said in the release. “By helping to relieve this burden, more of our residents and families can now access the care they need and deserve. The medical debt relief program is achieving strong results by reducing stress on our families, improving health outcomes and making our healthcare system more accessible and responsive.”
Every dollar the state invests in the Medical Debt Relief Program erases over $100 in medical debt. To date, Illinois has allocated approximately $2.8 million in the program to eliminate $430 million in debt – an extraordinary return on investment.
The FY26 state budget includes a $15 million reappropriation to continue acquiring and forgiving outstanding, un-payable medical debt.
“No family should have to experience the negative impact of medical debt on their finances,” Rep. Kelly Cassidy, D-Chicago, said in the release. “I am proud to have worked with Governor Pritzker to address this significant financial burden while continuing to strive for equity in our healthcare system.”
“Not only is Illinois one of the first states to provide medical debt relief, but I am thrilled we have now erased $430 million in debt for over 357,000 people,” State Sen. Mike Simmons, D-Chicago, said in the release. “When someone has medical debt, they are less likely to seek out medical care that could improve or save their life – a decision no one should have to make. I am proud to have championed this legislation forward into action and I am thrilled Illinois is providing relief to residents while improving the health of our communities.”
By the Numbers
Total Debt Relieved: $430,000,000
Residents Benefitted: 358,000
Return on Investment: $1 state dollar = $150+ in debt erased
Average Amount of Debt Relieved Per Person: $1,100
Highest Amount of Debt Relieved for One Person: $300,000
In 27 counties, more than 5% of residents have received relief. Seven counties with populations over 100,000 exceeded that threshold.
Area counties
Effingham
Average debt: $1,253.25
Debt relieved: $2,269,633.63
Recipients: 1,811
Fayette
Average debt: $1,100.49
Debt relieved: $809,960.19
Recipients: 736
Shelby
Average debt: $1,245.88
Debt relieved: $589,303.31
Recipients: 473
Cumberland
Average debt: $1,695.51
Debt relieved: $666,337.15
Recipients: 393
Clay
Average debt: $1,010.48
Debt relieved: $314,259.07
Recipients: 311
Illinois is among the first states to take statewide action to relieve medical debt – one of the leading causes of bankruptcy nationwide. The medical debt relief effort is part of the Pritzker Administration’s ongoing commitment to improve health outcomes and support families in Illinois, the release said.
The program is operated in partnership with Undue Medical Debt, a national nonprofit that purchases bundled medical debts—often for pennies on the dollar—from health systems and forgives them for residents with documented financial need. Cook County’s separate partnership with Undue, launched in 2022, has already delivered relief to more than 500,000 residents.
“I’m grateful that Illinois continues to take bold action on the medical debt crisis at a time when it is worsening for families nationwide,” Undue Medical Debt CEO and president Allison Sesso said in the release. “With 7 in 10 people saying healthcare is unaffordable and nearly half struggling to afford common expenses like dental care and deductibles, Illinois is providing much needed support. This partnership will bring both financial and emotional relief to residents who never chose to get sick or face medical emergencies in the first place. We hope this relief encourages people to re-engage with the healthcare system. We look forward to continuing our collaboration with Illinois leaders and provider partners to chip away at this burden affecting an estimated 100 million families.”
To be eligible for relief, individuals must be Illinois residents with household incomes at or below 400% of the federal poverty level, or their medical debt must equal 5% or more of their annual household income. Eligible Illinois residents do not need to apply for assistance; impacted households receive notification letters after their debts have been eliminated in a branded Undue envelope with the State of Illinois seal.
The program is open to partnering with additional Illinois hospital systems to acquire qualifying medical debt. To learn more about the program please visit the HFS website at hfs.illinois.gov/info/medicaldebtrelief.html