RI Treasury Program Forgives an Additional $6 Million in Medical Debt, Impacting More Than 3,000 Rhode Islanders
Providence, RI – Today, Rhode Island General Treasurer James A. Diossa announced that an additional $6 million in medical debt, held by over 3,000 Rhode Islanders has been forgiven through the state’s Medical Debt Relief Program.
To date, the program has relieved more than $16.3 million in medical debt, helping more than 9,000 Rhode Islanders. On average, one dollar given to Undue Medical Debt relieves $100 of medical debt. Undue Medical Debt branded envelopes began arriving in the mail at the end of June, letting qualifying individuals know that some or all of their debt is gone.
“Medical debt should never stand in the way of a family’s financial future. Through our partnership with Undue Medical Debt, we are providing meaningful relief to Rhode Islanders while helping strengthen the financial well-being of communities across our state,” said Treasurer Diossa. “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. We are proud to continue investing in initiatives that improve lives and create greater economic opportunity for all Rhode Islanders.”
During the 2024 legislative session, the General Assembly passed legislation establishing the medical debt relief program, funded with $1 Million to facilitate the purchase, cancellation, and forgiveness of medical debt. The Rhode Island Treasury partnered with Undue Medical Debt, a national 501(c)(3) charity that specializes in purchasing medical debt from healthcare providers, including hospitals and physicians’ groups, as well as from the secondary debt market, such as debt collectors.
“No one should have to choose between their health and their financial security,” said Undue Medical Debt Vice President of Government Initiatives Courtney Werpy Story. “I’m grateful to Treasurer Diossa and the State of Rhode Island for their continued commitment to erasing these debts of necessity. No one chooses to get sick, be in an accident or have a chronic condition, yet medical debt continues to threaten families’ financial stability across the state. This program has now brought both financial and emotional relief to more than 9,000 Rhode Islanders, and we look forward to reaching even more residents in the future.”
Medical debt relief is source-based, meaning only debts held by participating providers or collectors can be canceled and debt relief cannot be requested. Those who qualify for relief must be current Rhode Island residents and either be four times (400%) or below the federal poverty level (just over $100,000 a year for a family of three) or have medical debt that’s 5% or more of their annual income. As more medical debt is acquired for relief, Treasury will make subsequent announcements.
For more information on Treasury’s Medical Debt Relief Program, visit Medical Debt Relief Program | Rhode Island Office of the General Treasurer.
A sample of the letter can be found here. To learn more about Undue’s model, visit Frequently Asked Questions — Undue Medical Debt.
