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Governor Whitmer’s state-funded partnership with Undue Medical Debt eliminates burdens for thousands of low-income Michiganders.
$144 Million in Medical Bills Canceled for Thousands of Low-Income Patients
A statewide medical debt relief effort launched by Governor Gretchen Whitmer has canceled more than $144 million in medical bills for nearly 210,000 Michiganders, according to a release from the governor’s office. The program, a public-private collaboration between the State of Michigan and the nonprofit Undue Medical Debt, aims to ease financial burdens caused by unpayable medical costs.
The forgiven debt, sourced from participating hospitals that have asked to remain anonymous, was erased for residents who either earned below four times the federal poverty level or whose medical debt exceeded 5% of their annual income. No application was required.
The bulk of relief is concentrated in southeast Michigan, with Macomb, Ingham, Kent, Genesee, and Jackson counties among the top beneficiaries. The funding was supported in part by the state’s 2024 budget allocation of $4.5 million.
Whitmer Ties Medical Debt Relief to GOP Health Policy Cuts
“Being sick or injured shouldn’t bankrupt families,” said Governor Whitmer, linking the action to recent Republican-led Medicaid cuts passed at the federal level. “This action ensures fewer Michigan families have to choose between putting food on the table or paying medical bills.”
Lt. Gov. Garlin Gilchrist II echoed the concern: “Medical debt impacts the ability to work, eat, and even seek more care. This relief is a step forward.”
The relief comes as the state faces potential increases in uninsured residents. Allison Sesso, president of Undue Medical Debt, warned that the “recently passed budget bill in Washington will terminate health insurance for millions, including an estimated 340,000 in this state.”
Counties with Largest Relief Totals Centered in Metro Detroit and Mid-Michigan
Among counties seeing the largest impact:
- Macomb County: $13.5 million relief for 20,756 individuals
- Ingham County: $7.1 million for 16,845 residents
- Jackson County: $9.6 million for 11,375 residents
- Genesee County: $8.5 million for 10,800 residents
Relief letters are expected to arrive by mail in July 2025. Recipients are encouraged to share their stories but need take no action to receive the benefit.
Nonprofit Plays Central Role in Statewide Rollout
Undue Medical Debt, formerly RIP Medical Debt, purchases bundled medical debt from hospitals and collectors for pennies on the dollar. A single donated dollar can cancel $100 in debt, making it an efficient use of public funds.
The nonprofit has worked with counties like Wayne, Oakland, and Kalamazoo in prior rounds of debt forgiveness. According to Undue, medical debt is the number one cause of bankruptcy in the United States, affecting more than 100 million people, including an estimated 700,000 in Michigan.
Medical Bankruptcy Remains a Leading Financial Crisis in Michigan
A 2022 report by the Consumer Financial Protection Bureau found that medical debt accounts for 58% of all third-party collection activity on credit reports in the U.S. The burden discourages people from seeking necessary care and can limit access to housing and employment.
“People don’t choose to get sick,” Sesso said. “For too many, medical bills are the trigger for long-term financial distress.”
More Relief Rounds Ahead Amid Insurance Coverage Fears
As more Michigan hospitals opt into the program, additional rounds of debt relief are expected. Whitmer’s office indicated that current funding levels will support a statewide expansion beyond southeast Michigan. There is also bipartisan legislation pending in Lansing aimed at providing further medical debt relief.
State Sen. Sarah Anthony (D-Lansing), chair of the Senate Appropriations Committee, called the forgiveness “targeted, meaningful relief” and advocated continued investment in the program.
Whitmer Administration’s Cost-Cutting Record Highlighted
The governor’s office positioned the medical debt relief program as part of a broader effort to reduce living costs in Michigan. Other actions include:
- Rolling back the retirement tax
- Expanding the Working Families Tax Credit
- Delivering $400 auto insurance rebates
- Eliminating the tampon tax
- Raising the minimum wage and improving earned sick leave
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