PHOENIX — Governor Katie Hobbs has announced that millions of dollars in medical debt have been erased for hundreds of thousands of Arizonans.
Governor Hobbs said Wednesday that a national nonprofit, Undue Medical Debt, partnered with the Hobbs administration to help more than 352,000 Arizonans.
Arizonans are estimated to have about $2.4 billion worth of medical debt, according to the governor's office.
Last year, Hobbs announced an initiative to erase medical debt, and the state made American Rescue Plan Act funds available to do so. With those funds, Undue Medical Debt purchased medical debt from hospitals and collection agencies for pennies on the dollar to cancel balances.
The governor’s office said Arizonans who have had their medical debt erased will receive a branded letter in the mail from Undue Medical Debt. Some letters have already gone out, while others will arrive in the coming weeks.
Arizonans who are eligible include those who earn 400% of the Federal Poverty Level or below and/or individuals who owe at least 5% of their annual income for outstanding medical bills. There is no application process.
