MI To Forgive Medical Debt For 72K Residents: What To Know

LANSING, MI — Nearly 72,000 Michigan residents will see their medical debt erased, the governor's office announced Monday.

This is the second round of medical debt forgiveness under Gov. Gretchen Whitmer's administration, totaling over $74 million for 71,871 Michiganders. The first round, which was $144 million, went out in July 2025.

Those who qualify for medical debt relief must be four times (400 percent) or below the federal poverty level or have medical debts that equal 5 percent or more of their annual income.

Recipients will receive letters starting this week, officials said.

"Here in Michigan, we believe being sick or getting injured shouldn’t mean going broke," Whitmer said. "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."

Whitmer's administration partnered with the national nonprofit, Undue Medical Debt, for the program.

The nonprofit is 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 debt was sourced from local hospitals, who wished to remain anonymous.

Officials said 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.

"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," Michigan Sen. Sarah Anthony (D-Lansing) said. "This is the kind of meaningful impact we can have when we pass a state budget that puts people first."

Here are the top 10 jurisdictions receiving relief: