Advocates joined Gov. JB Pritzker Monday to call on lawmakers to approve a $10 million investment in the upcoming budget to help eliminate medical debt for 340,000 low-income Illinoisans. [Health News Illinois]

Pritzker told reporters at a press conference in Chicago that a statewide program could relieve an estimated $1 billion in medical debt.

“As we continue to negotiate and pass a balanced budget, this low-cost program to eliminate medical debt will alleviate a major burden on families across Illinois,” he said.

The program would work with the recently renamed Undue Medical Debt, a New York-based nonprofit that has been working to wipe out medical debts since it got its start in 2014.

Pritzker plans the initial investment to be part of a four-year effort that would, in total, erase an estimated $4 billion of medical debt for over 1 million Illinoisans.

The proposal would mimic an initiative from Cook County, which county board President Toni Preckwinkle said Monday has aided more than 200,000 residents in eliminating nearly $350 million of debt.

“Medical debt relief is a crucial step, and it is part of a broader, equitable strategy to enhance the financial stability and support the holistic well-being of Illinois residents,” she said.

Fourteen percent of Illinoisans have medical debt in collections, according to Pritzker’s office. However, that number jumps to nearly 20 percent in Black and Brown communities.

State leaders were joined by Loyola Medicine CEO Shawn Vincent, who recently announced his health system will forgive over $112 million in medical debt. The move will affect more than 60,000 Illinoisans.

“This initiative underscores our dedication to alleviating the burden of medical debt on our patients in the communities that we serve,” he said.

The press conference comes after a recent report found that medical debt relief did not improve the mental health or the credit scores of debtors, on average. Those whose bills had been paid were just as likely to forgo medical care as those whose bills were left unpaid.

Pritzker noted Monday that the study’s findings were compiled from 2018 to 2020, and that the results “were not indicative” of what is now being seen with the organization. He said larger municipalities have made efforts to address medical debt and have received positive feedback.

“There has been a lot of improvement in the program, and we're really pleased to continue the progress,” he said.

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