Medical debt will be canceled for around 250,000 people in Connecticut, the first state in the U.S. to do so.
The New England state is planning to erase approximately $1 billion in medical debt this year by using $6.5 million in American Rescue Plan Act funds.
Governor Ned Lamont said in the press release issued in February 2023 that “this initiative will not only help Connecticut residents who are saddled with debt financially, but it also lifts the significant emotional toll that this type of debt has on individuals who do not have the means to get out, especially for those who are simultaneously experiencing significant medical problems.”
It continues: “This debt erasure will put millions of dollars back into the Connecticut economy and provide an economic stimulus to local communities.”
The release cites data from the U.S. Census Bureau which estimates that 19 percent of American households currently have medical debt, and the median amount owed is $2,000.
Newsweek has contacted Ned Lamont for comment via the contact form on his website.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.