Gov. Whitmer Announces Second Round of Medical Debt Forgiveness, Erasing Over $74 Million for Nearly 72,000 Michiganders Across the State

FOR IMMEDIATE RELEASE

June 22, 2026

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Gov. Whitmer Announces Second Round of Medical Debt Forgiveness, Erasing Over $74 Million for Nearly 72,000 Michiganders Across the State

Reiterates call on the legislature to take action to lower costs and support more medical debt relief efforts

LANSING, Mich. - Today, Governor Gretchen Whitmer announced the second round of medical debt forgiveness, totaling over $74 million for 71,871 Michiganders. Recipients will receive letters starting this week. Combined with the $144 million of forgiveness announced in July 2025, the State of Michigan has now provided more than $200 million in relief.

"Here in Michigan, we believe being sick or getting injured shouldn't mean going broke," said Governor Whitmer. "That's why I'm proud to partner with Undue Medical Debt, so we can erase over $74 million of medical debt for almost 72,000 Michiganders across the state. This action ensures fewer Michigan families must choose between putting food on the table or paying their medical bills, at a time when so many already are struggling with rising costs on the essentials driven by tariffs, cuts to Medicaid, and the Iran War. Let's keep working together to address medical debt in Michigan."

"Medical debt makes it harder to get a job, put food on the table, and access care," said Lt. Governor Garlin Gilchrist II. "Today's forgiveness of over $74 million of medical debt will help nearly 72,000 Michiganders in communities across our state move forward with their lives. Governor Whitmer and I are committed to expanding access to quality, affordable healthcare. Let's keep working together to build a healthier, more prosperous Michigan."

The State of Michigan has collaborated with the national nonprofit, Undue Medical Debt, with the goal of putting money back in Michiganders' pockets by erasing medical debt for people across the state. On average, one dollar given to Undue Medical Debt relieves $100 of medical debt. The debt was sourced from local hospitals, which wish to remain anonymous but are committed to community benefit and making healthcare accessible. As the cost of health care continues to skyrocket, Governor Whitmer remains committed to keeping costs low for Michiganders, so they can get the care they need without breaking the bank.

"I'm grateful to Governor Whitmer and the state of Michigan for this continued commitment to erasing the financial and emotional burden of medical debt - now reaching more than $200 million in relief for over 280,000 Michiganders," said Allison Sesso, president and CEO of Undue Medical Debt. "No one chooses to get sick, be in an accident or have a chronic condition, and no family should have to choose between putting food on the table and paying their medical bills. At a time when federal policies are threatening to push millions more into medical debt, this partnership sends a powerful message that states can and will step up to protect their residents. We're proud to work with Michigan's community-minded hospital partners who recognize that erasing these debts of necessity helps their patients and communities thrive, and we look forward to continuing this collaboration to reach even more families."

"This week, over 70,000 Michiganders are receiving not just a letter, but a lifeline - an opportunity to break free from the weight of medical debt and have a real shot at securing a brighter, financially secure future," said state Sen. Sarah Anthony (D-Lansing). "This is the kind of meaningful impact we can have when we pass a state budget that puts people first. I'm beyond thrilled to know that so many folks across the state will feel real, life-changing relief this week, and I am committed to continuing to fight on both the budget and policy front to ensure more Michiganders don't have to bear the burden of medical debt alone."

"Michigan has made meaningful investments to erase medical debt for more than 210,000 Michiganders, including $13.5 million for over 20,700 residents in Macomb County," said state Representative Mai Xiong (D-Warren). "That relief helped lift a burden that too often forces families to choose between paying for groceries, keeping the lights on, or seeking the care they need. We must continue to invest in programs that put money back into people's pockets. For families living paycheck to paycheck, even a small boost can make a big difference. Reducing medical debt strengthens families, improves financial stability, and helps ensure every Michigander has the opportunity to thrive."

Impact of Medical Debt Abolishment

Medical debt often results from unplanned and unexpected illnesses and accidents. About half of adults in the United States have difficulty in paying their health care bills. In many areas and for many reasons, people remain uninsured and those who are insured receive expensive bills after receiving care.

Across the U.S., medical debt is the number one cause of bankruptcy, and it affects hundreds of thousands of Michiganders who have to choose between paying their medical bills or putting food on the table. Relieving Michiganders of the burden of medical debt will help to stop people from skipping or delaying medical care because of cost-related fears and to support people living healthier lives.

Undue Medical Debt is a national nonprofit organization dedicated to erasing medical debt for Americans across the country by purchasing qualifying medical debt in bulk for pennies on the dollar from providers like hospitals and physicians' groups as well as collection agencies. The partnership between Undue Medical Debt and the State of Michigan will support hundreds of thousands of Michiganders, giving them a lifeline to free themselves of the burden of medical debt.

The list below reflects the top 10 jurisdictions receiving relief. Other areas will see more relief as forgiveness continues.

Those who qualify for medical debt relief are either four times (400%) or below the federal poverty level or have medical debts that equal 5% or more of their annual income. These are the only criteria for relief. This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief cannot be requested and is source-based, depending on community-minded providers like hospitals who choose to engage. Those benefiting from medical debt relief will receive an Undue branded letter in the mail starting this week. There is no action required from recipients, the letters simply inform them of debt relief details and encourage them to share their stories.

Prior Rounds of Medical Debt Erasure in Michigan

Today's round of medical debt erasure is supported through a $4.5 million 2024 State of Michigan appropriation and an ongoing partnership with Wayne, Oakland, and Kalamazoo Counties.

In July 2025, the State of Michigan previously collaborated with Undue for the first round of medical debt forgiveness, totaling over $144 million for nearly 210,000 Michiganders.

Fighting to Reduce Medical Debt

The Whitmer-Gilchrist administration has been committed to lowering costs reducing medical debt for Michiganders across the state, putting more money back in their pockets. In 2025, Governor Whitmer signed a balanced, bipartisan budget protecting core Medicaid services for Michiganders.

In her 2026 State of the State address, Governor Whitmer called on the legislature to get to work and take action to ease the burden of medical debt:

1. Capping interest rates on medical debt.
2. Preventing medical debt from showing up on credit reports.
3. Requiring hospitals to set up financial assistance programs for patients.
4. Banning liens or foreclosures on homes because of medical debt.

Governor Whitmer's budget recommendation this year proposed more investments to protect access to care for the 2.5 million Michiganders on Medicaid. In her State of the State Address, she also called on Congress to extend the expired Affordable Care Act subsidies, which would lower costs and protect coverage for thousands of Michiganders.

Through the State of Michigan's partnership with Undue, more rounds of medical debt forgiveness will take place in the future.

About Undue Medical Debt

Undue Medical Debt (formerly RIP Medical Debt) is a national 501(c)(3) nonprofit whose purpose is to strengthen communities by erasing financially burdensome medical debt. Founded in 2014 by former debt collection executives, Undue Medical Debt is the leading charitable organization that erases un-payable medical debts. It works tirelessly to end medical debt and ensure a future where everyone can access healthcare without fear.

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