Nearly one-third of Americans are dealing with some form of medical debt, including more than 200,000 people in Michigan.
A nonprofit organization has been collaborating with counties across the state to promote change.
Michigan Governor Gretchen Whitmer, along with Lt. Gov. Garlin Gilchrist and Wayne County Executive Warren Evans, announced the state’s formal partnership with Undue Medical Debt, a New York City-based nonprofit that has helped clear more than $20 billion in medical debt since it formed in 2015.
“This kind of debt can last a lifetime, can burden someone as they try to get ahead,” Whitmer said. “We also know that medical debt, coupled with the recent federal actions about cutting Medicaid and cutting access for healthcare, is only going to make it harder for Michiganders to get the care that they need.”
The organization clears people’s outstanding debt by buying it from creditors with no charge or obligation. People find out when they get a letter in the mail.
“When we get those debts in our hands, we send letters out en masse to thousands of people and let them know that they are free and clear,” Allison Sesso, the organization’s CEO, said.
“We’re not asking for any of your personal information,” Sesso added. “We’re not asking you to follow up.”
The organization had already been working with Wayne County since March 2024, clearing $42 million in medical debt for more than 71,000 residents.
Evans, along with State Senator Sarah Anthony, helped spearhead the movement to engage the entire state.
Along with Wayne County, the nonprofit has cleared a combined $27.25 million in medical debt in Macomb, Monroe, Lenawee, and St. Clair counties.
With the impending cuts to Medicaid, the governor says this help is desperately needed at this time.
“Eliminating medical debt like this,” Whitmer said, “and partnering with Undue Medical Debt and other organizations, and hospitals was really an important way that we can give Michiganders some relief right now.”