Residents in at least five states have had medical debt erased in 2026, totaling more than $1 billion.
Four states and one Indiana health system worked with Undue Medical Debt. The nonprofit has said it has erased more than $40 billion in medical debt across all 50 states since its formation in 2014 by purchasing qualifying debt in bulk and canceling it.
In July, Undue Medical Debt erased more than $550 million in debt for more than 261,000 Californians. The relief was funded by a donation from Evan Spiegel, CEO of technology company Snap, and Miranda Kerr, founder of skincare company KORA Organics.
In June, Michigan Gov. Gretchen Whitmer announced the state’s latest round of relief: more than $74 million in medical debt for 71,871 residents. That brings Michigan’s total relief to more than $200 million.
That same month, Connecticut Gov. Ned Lamont said the state erased nearly $315 million for more than 97,000 residents in its latest round. The program has erased more than $513 million since it began.
In January, New Jersey abolished about $100 million in debt for 60,000 residents. That brings the state’s total to nearly $1.6 billion since its partnership began in 2024. Also in January, Fort Wayne, Ind.-based Parkview Health partnered with Undue to eliminate $64.13 million in debt for more than 35,000 patients.
Counting only the 2026 eliminations, residents in these five states have had an estimated $1.1 billion in medical debt erased.
Two other states also reached cumulative milestones in 2026. Arizona Gov. Katie Hobbs said the state has erased more than $1 billion in medical debt, affecting 670,963 residents in total, including more than 200,000 in August. In February, Illinois Gov. J.B. Pritzker said the state has erased more than $1.1 billion in debt for more than 500,000 residents.
A recent Commonwealth Fund report found that nearly 1 in 3 privately insured Americans ages 19 to 64 are paying off medical bills or debt over time. Among respondents with unpaid medical bills, 30% said they had delayed or avoided necessary care because of it.
