Illinois Gov. J.B. Pritzker is touting a proposal contained within his Fiscal Year 2025 budget to purchase $1 billion in medical debt from hospitals and collection agencies, which would benefit hundreds of thousands of state residents.
The proposal would earmark approximately $10 million in funding to purchase the medical debt of up to 300,000 Illinoisans, and was included in the governor’s proposed budget earlier this year.
“When I became governor, I promised to put Springfield back on the side of 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.”
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter here.
Various government entities have pursued similar programs in recent years, buying back debt at pennies on the dollar from collection agencies and other groups. In Washington D.C., officials purchased $90 million in medical debt for $900,000 last year.
Other nonprofits have purchased billions of dollars in debt, including a group called RIP Medical Debt, which has wiped out more than $6.7 billion in debt.
Voting on the governor’s budget will take place later this spring.
