Gov. J.B. Pritzker of Illinois has unveiled a budget proposal that includes a plan to eliminate over $1 billion in medical debt for state residents, a move that follows the lead of Cook County's recent debt forgiveness program. The state's initiative would channel $10 million of federal funds into this effort, which could potentially benefit an estimated 364,000 individuals in just the first year, Pritzker detailed in a Sun-Times interview.
The push to address the burden of medical debt statewide builds on Cook County Board President Toni Preckwinkle's initiative, which last year put $12 million of federal money to work, canceling a sizeable chunk of residents' medical debt. Echoing Cook County's success, Pritzker said, "This is removing a burden that people live with for sometimes many years, and frankly, the debt holders also know that it will likely never be paid off. But it sits there like a dark cloud over someone's life," the Governor told the Sun-Times. Cook County's program had already scrapped over $348 million of medical debt, assisting over 200,000 county residents.
The plan would include the same income-based eligibility criteria used in Cook County to determine who qualifies for debt relief. Families making up to four times the federal poverty level or those saddled with medical bills amounting to at least 5% of their annual income would be targeted for assistance. According to Pritzker's office, nearly two million Illinois residents have medical debt in collections, with the majority being low-income individuals.
Pritzker's strategy taps into the services of RIP Medical Debt, a nonprofit that buys medical debt portfolios from hospitals and health systems. The group leverages donations to expunge the debt of those facing financial difficulties – for every dollar donated, a hundred dollars of medical debt can be cleared, according to information from the BNNBreaking report. With such efficiencies, the program can cast, a wide humanitarian net. In addition to tackling medical debt, the governor's budget is expected to include expenditures for early childhood education and resources to manage the ongoing migrant crisis.
While critics may focus on the proposed tax increase on sports betting revenues – opposed by an industry that generated over $1 billion in 2023 – many see the move as Pritzker's attempt to source ongoing funding for these important programs. Pritzker will deliver his sixth budget address on Wednesday, riding the highs of a projected $1.4 billion surplus against a prior forecasted shortfall of $900 million, according to his office's November predictions.
