$30 million in medical debt erased for 17,000 people in Eastern Massachusetts

BOSTON — More than 17,000 residents of Eastern Massachusetts will see a collective $30 million in medical debt erased, thanks to a nonprofit-led initiative aimed at easing the financial burden of healthcare costs.

Announced by Allison Sesso, president and CEO of Undue Medical Debt, the purchase was made possible by funding from the Atrius Health Equity Foundation. The initiative targets individuals with incomes at or below 400% of the federal poverty level or those whose medical debt exceeds 5% of their annual income.

“I’m very pleased that Undue is part of this collaboration, spearheaded by the Atrius Health Equity Foundation, to provide a holistic response to the medical debt crisis that is burdening over 100 million people in the U.S.,” said Sesso. “Medical debt abolishment is one piece of the puzzle and while it’s by no means a silver bullet, it provides timely relief to counteract the financial and emotional weight of these debts of necessity. I’m overjoyed to be announcing this first round of debt erasure and look forward to the future of this program.”

On average, individuals will see about $1,800 in debt abolished. The debts were sourced from physician groups, hospitals, and secondary markets, such as collection agencies. Qualifying individuals will receive notification letters beginning later this month. No action is required to benefit from the debt relief.

This represents the largest single medical debt abolishment in Massachusetts to date by Undue Medical Debt, and the first carried out through the regional initiative launched in 2024 by the Atrius Health Equity Foundation, which aims to eliminate up to $500 million in medical debt across Eastern Massachusetts.

“Medical debt can harm individuals’ and families’ financial stability and deter people from seeking the care they need,” said Ann Hwang, president of the Atrius Health Equity Foundation. “The foundation is glad to support this effort as part of our work to improve health and well-being across Eastern Massachusetts.”

Amy Rosenthal, executive director of Health Care For All, called the announcement “a meaningful step toward addressing health inequities and economic instability” in the state.

“This significant debt abolishment will make a meaningful impact on the many Massachusetts residents struggling with medical debt and make needed strides towards improving health inequities and economic instability in the Commonwealth,” Rosenthal said.

More debt abolishment is expected in future waves as additional qualifying accounts are identified.