The state-run Medical Debt Relief Program has erased $16.3 million in medical bills for more than 9,000 Rhode Islanders in the 19 months since the initiative began, officials said July 8. The update from the Rhode Island General Treasurer’s office shows the program is already delivering on its goal to reduce financial strain caused by medical emergencies.
How the program works and what remains
Lawmakers approved a $1 million appropriation for the program in the 2025 budget. As of the July update, program administrators have spent about $300,000 of that initial funding, leaving roughly $700,000 available to purchase and forgive more medical debt.
| Metric | Value |
|---|---|
| Medical debt forgiven | $16.3 million |
| Residents helped | 9,000+ |
| Initial appropriation | $1 million |
| Funds spent | $300,000 |
| Funds remaining | $700,000 |
The program operates by leveraging bulk buying of medical debt through a nonprofit administrator, Undue Medical Debt, which purchases unpaid bills from providers and collection agencies for a fraction of their face value. The treasurer’s office estimates the state is able to relieve roughly $100 in medical debt for every $1 it spends.
Eligibility and process
There is no application process for households. Undue identifies eligible accounts and works with the treasurer’s office to automatically forgive qualifying debt. To be considered, a debt must meet a minimum threshold of $600 and equal at least 5% of a person’s annual income. The program also allows an alternate standard for lower-income Rhode Islanders: those earning under 400% of the federal poverty level may qualify for forgiveness of any amount of medical debt.
- No application is required — eligible accounts are identified and paid off by the administrator.
- Minimum qualifying debt is $600 and must be at least 5% of annual income.
- Low-income residents (under 400% of the federal poverty level) can qualify regardless of amount.
- The program accepts charitable donations, though none have been reported to date.
“This program is about more than eliminating debt, it's about giving people peace of mind, restoring financial stability, and ensuring that a medical emergency does not become a lifelong financial burden,”
General Treasurer James Diossa said in a statement that the administration is proud to continue investing in efforts that increase economic opportunity for Rhode Islanders.
Early outcomes, limits and next steps
Preliminary estimates at the program’s launch suggested the $1 million could help as many as 30,000 residents and relieve roughly $85 million in medical debt if the purchasing leverage held. So far, the program’s outcomes — 9,000 residents and $16.3 million in forgiven debt — indicate the approach can produce substantial relief, though the full potential depends on how remaining funds are deployed and whether outside donations arrive.
State officials said the program will continue to identify and purchase qualifying accounts through Undue. For now, Rhode Islanders in financial distress over medical bills do not need to apply; the program’s automatic identification process is designed to reach eligible residents without adding paperwork burdens.
The program follows similar models used in other states and municipalities that have leveraged bulk purchase of medical debt to reduce the long-term economic harm of health-related expenses. Officials will likely monitor results as the remaining funds are used and as the state considers whether to expand the effort or seek additional funding.
