Connecticut is working to relieve the often-overwhelming burden of medical debt by enlisting a nonprofit that crunches that debt, easing costs for thousands of families.
“What we do is we buy those debts for pennies on the dollar,” said Allison Sesso, president and CEO of the nonprofit, Undue Medical Debt, which negotiates a price with providers, buys and then cancels the debt, which is sold at a fraction of its face value because it’s held by those who are least able to pay.
In the first round of the relief effort, the state is spending $100 thousand in federal funds to wipe out a total of $30 million in medical debt for 23 thousand residents. $6.5 million has been set aside for the long-term effort to help many more, with a goal of zapping about $650 million in debt.
There’s no need to apply for the help. Undue Medical Debt has a system to pre-qualify beneficiaries who have a household income of less than 4 times the federal poverty level or hold medical debt that’s worth more than 5 percent of that income.
Starting next week, the selected families will be notified with a letter from Undue Medical Debt, telling them their medical debt is being reduced or erased.
“People tend to have some disbelief when they get these letters,” said Sesso, at a state Capitol news conference with Gov. Ned Lamont. “’Y’know, I didn’t do anything. How did I get this?’ But then when they realize it’s real, they usually have tears of joy and happiness and a real sense of relief.”
“This is all about making sure that healthcare is more broadly available and accessible and affordable,” said Lamont. “We want to make sure that nobody—nobody—is discouraged from getting the checkup they need, the preventative care they need and making sure that our amazing hospitals here in the state can take care of you.”