Up to 1 million residents in Arizona may have their medical debt forgiven through a new program the state's governor announced March 4.
Arizona Gov. Katie Hobbs said the state has partnered with RIP Medical Debt, a nonprofit that buys and eliminates debt, to cancel approximately $2 billion in residents' medical debt. Through the partnership, Arizona will make up to $30 million in COVID-19 relief funds available for the nonprofit to use for debt purchasing.
Residents who earn less than 400% of the federal poverty line or who owe more than 5% of their annual income will be eligible for medical debt forgiveness.
Officials said this marks the largest state-led effort to erase medical debt in history.