RI medical debt relief program erases bills for 9,000 residents in 19 months

More than 9,000 Rhode Islanders have had $16.3 million in medical debt forgiven in the 19 months since the state debt relief program began, Rhode Island General Treasurer James Diossa’s office announced last week.

The update on July 8 comes nearly two years after state lawmakers created the Rhode Island Medical Debt Relief Program, with a $1 million appropriation in the state’s fiscal 2025 budget. Nearly three-quarters of the initial funding, $700,000, is still available, with $300,000 spent since the program launched in October 2024, Carla Rojo, a spokesperson for Diossa’s office, said in an email.

Preliminary estimates at the time of the launch suggested the $1 million program could help 30,000 residents pay off $85 million in medical debt. The program also accepts charitable donations through the New York nonprofit administrator, Undue Medical Debt, though no donations have been made to date, Rojo said.

Following practices in other cities, counties, and states, including Connecticut, Rhode Island’s debt relief program leverages bulk buying power to purchase debt from healthcare providers and collection agencies at a steep discount, spending “pennies on the dollar” to erase costly medical bills for residents. On average, every dollar spent relieves $100 of medical debt, according to Diossa’s office.

“This program is about more than eliminating debt, it’s about giving people peace of mind, restoring financial stability, and ensuring that a medical emergency does not become a lifelong financial burden,” Diossa said in a statement. “We are proud to continue investing in initiatives that improve lives and create greater economic opportunity for all Rhode Islanders.” 

There is no application or request process. Instead, Undue identifies and pays off medical bills, working with Diossa’s office to identify and automatically forgive the debt of eligible residents. There’s no cap on how much debt can be forgiven, though it must be at least $600 and equal to 5% of a resident’s annual income to qualify. Alternatively, low-income residents who earn less than 400% of the federal poverty level — $60,240 for one-person, or $124,800 for a family of four — can have any amount of outstanding medical bills paid off and forgiven. 

Program beneficiaries will be notified by mail if and when their debt has been forgiven. Only the debt from costs deemed “medically necessary” by health care providers, and at least one year overdue, is eligible to be forgiven. More information on the state medical debt forgiveness program is available on the state treasurer’s office website.