Illinois Gov. J.B. Pritzker is touting a proposal in his fiscal year 2025 budget to buy $1 billion in medical debt from hospitals and collection agencies, which would benefit hundreds of thousands of state residents. right.
The proposal, which would set aside about $10 million in funding to buy down the medical debt of up to 300,000 Illinoisans, was included in the governor’s proposed budget earlier this year.
“When I became governor, I promised to bring Springfield back to working families,” the governor said on social media. “With my budget, Illinois will buy back up to $1 billion worth of medical debt for more than 300,000 Illinoisans. It’s the right thing to do.”
In recent years, various government agencies have pursued similar programs to buy back debt from debt collection agencies and other entities for pennies on the dollar. In Washington DC, The authority purchased $90 million in medical debt last year for $900,000.
Other nonprofits are buying billions of dollars in bonds. A group called RIP Medical Debtwiped out more than $6.7 billion in debt.
A vote on the governor’s budget is expected to take place later this spring.
