Illinois, Cook County Erase $2B in Medical Debt

State and county programs buy debt for pennies on the dollar to provide relief to low-income residents

Published on Mar. 9, 2026

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The state of Illinois and Cook County have partnered with a nonprofit organization to purchase and eliminate over $2 billion in medical debt owed by low-income residents. The Illinois Medical Debt Relief Program used a $10 million appropriation to erase $1.1 billion in debt, while Cook County's $7 million investment eliminated an additional $820 million. Residents who qualify automatically receive letters notifying them that their debt has been forgiven, providing financial relief to thousands of families.

Why it matters

Medical debt can be a significant burden for low-income individuals and families, often dragging down credit scores and limiting financial opportunities. These programs aim to alleviate that burden and provide a fresh start for those struggling with unaffordable medical bills, restoring hope and financial security.

The details

The state and county programs work by purchasing qualifying medical debt portfolios from hospitals and debt collectors for pennies on the dollar, then erasing the balances altogether. This allows healthcare providers to recoup at least some of the unpaid bills while relieving the debt burden for patients. Eligible residents are those whose medical debt equals at least 5% of their household income or who earn less than 400% of the federal poverty level.

  • The Illinois Medical Debt Relief Program was established in 2024.
  • Cook County launched its Medical Debt Relief Initiative in 2022.
  • Gov. Pritzker announced the $1.1 billion in debt relief on March 3, 2026.

The players

Illinois Medical Debt Relief Program

A state program that purchases and eliminates qualifying medical debt owed by low-income residents.

Cook County Medical Debt Relief Initiative

A county-level program that has eliminated $820 million in medical debt since launching in 2022.

Undue Medical Debt

A nonprofit organization that partners with state and local governments to purchase and forgive medical debt.

Gov. J.B. Pritzker

The governor of Illinois who announced the $1.1 billion in debt relief through the state's program.

Sen. Mike Simmons

The chief Senate sponsor of the legislation that created the Illinois Medical Debt Relief Program.

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What they’re saying

“Lifting the burden of medical debt restores hope. It provides a sense of security.”

— Gov. J.B. Pritzker (Capitol News Illinois)

“If you take $1,000 out, I'm only making $4,000 a year. My little penny dollars a week go to groceries. Just so I can help out. I don't know what I would have done. ...I don't even want to know.”

— Kayleigh White, Rochelle resident (Capitol News Illinois)

“I'm very grateful we were selected because I don't really like having anything in collections.”

— Kelli Daugherty, Tolono resident (Capitol News Illinois)

What’s next

Budget negotiations are underway, with the legislature slated to adjourn on May 31. The continuation of the medical debt relief program will depend on whether the proposed $15 million in funding is approved.

The takeaway

These programs demonstrate how strategic investments can provide meaningful financial relief to thousands of low-income residents struggling with unaffordable medical debt, restoring hope and financial security. As lawmakers debate the state budget, the continuation of this impactful initiative hangs in the balance.