Cook County has reported a significant achievement, erasing nearly $665 million in medical debt since the launch of its debt relief initiative in 2022.
This program has benefitted close to 557,000 residents, with the most substantial debt relief experienced in the South and West sides of Chicago and surrounding suburbs.
On average, individuals have seen their medical debt reduced by amounts ranging from about $600 to $4,000, depending on their location.
Cook County Board President Toni Preckwinkle expressed her satisfaction with this milestone, noting the effort’s importance in improving the lives of local residents.
Preckwinkle remarked, “This has been a real boon to a substantial number of our residents. This I think is what the president of the United States at the time, Joe Biden, and Congress intended — that we make a real impact on peoples’ lives in the aftermath of a really cataclysmic event, not just the health scare, but the very troubling economic impacts that followed the pandemic.”
The county’s approach has set a precedent for other local governments nationwide, illustrating how community resources can be wielded effectively to alleviate medical debt.
Working alongside the nonprofit Undue Medical Debt, Cook County purchases old, uncollectible bills from medical providers at a fraction of their original cost and forgives the debt.
Leaders of Undue Medical Debt have indicated that with just $1, they can relieve at least $100 worth of medical debt or more for impacted individuals.
To finance this initiative, the county has allocated $9 million from federal funds aimed at recovery from the COVID-19 pandemic, with plans to erase up to $1 billion in medical debt for the residents.
This funding must be utilized by the end of 2026, and as of now, the county has already expended about two-thirds of that amount, as reported by Matt Richards, Cook County deputy chief of staff for health.
Across the United States, even those with private insurance are plagued by medical debt due to high deductibles that must be met before insurance kicks in.
According to KFF, a nonprofit health policy research group, approximately 20 million Americans—nearly 1 in 12—are currently burdened by medical debt.
This issue ranks as one of the leading causes of bankruptcy in the nation.
A recent report has highlighted the significant toll that medical debt takes on families in Illinois, particularly those in Black and immigrant communities, indicating that this financial strain is not only detrimental to savings but also affects overall health.
Richards remarked on the widespread prevalence of medical debt, stressing that communities of color, especially Black residents in historically underinvested areas, are disproportionately affected.
Residents do not need to apply for the relief program; instead, they receive a notification letter stating that some of their medical debt has been forgiven.
Eligibility for this program encompasses individuals with an income up to 400% of the federal poverty level, approximately $62,000 for a single person, or those whose medical debt exceeds 5% of their annual income.
Initially, Cook County had intended to allocate $12 million for this program but reduced the amount following the state’s announcement of its own debt relief initiative, which also covers county residents.
Looking ahead, Preckwinkle indicated that the county is likely to make decisions later this year regarding the potential continuation of its medical debt relief efforts once the federal funding is exhausted.
image source from：https://chicago.suntimes.com/health/2025/06/05/cook-county-erases-nearly-665-million-in-medical-debt-for-more-than-a-half-million-residents
