(WBBM NEWSRADIO) — Gov. J.B. Pritzker has signed two bills to help reduce the burden of medical debt on Illinois residents.
The first will relieve nearly $1 billion in medical debt for Illinois residents.
The measure earmarks about $10 million in state funding to purchase outstanding medical debt, with the goal of erasing nearly $1 billion of medical debt that’s currently in collections for state residents.
Medical debt can be purchased at very low prices and for every $1 spent, about $100 in medical debt can be forgiven. It is estimated that 340,000 Illinois residents will be impacted by the bill.
The state will work with Undue Medical Debt to negotiate the price and buy the medical debt.
Residents do not need to apply to have their debt bought. The plan will focus on eliminating debt for residents experiencing financial hardship.
Letters will be sent out informing impacted families. That could take place as soon as the fall of this year.
The second bill will make medal debt ineligible from being included on credit reports.