The State of Michigan is helping erase medical debt for over 200,000 residents. That’s after the state partnered with the group Undue Medical Debt to purchase and forgive over $144 million in medical debt.
Undue CEO Allison Sesso said her group made that possible by using the same tactics for-profit debt buyers use.
“We don’t follow up and say pay us something back, we’ll come into a payment plan. We say your debt is free and clear and you no longer owe it. And so that’s how our model works. People say, ‘Is this magic?’ No, it’s just math. There is a reality that medical debt can be bought for pennies on the dollar. One dollar relieves a hundred dollars of medical debt on average,” Sesso said during a press conference in Detroit Thursday.
Government officials are advising residents to check for a letter in the mail letting them know if their bills are among the forgiven debt. The letters will be coming from Undue and should be sent out by the end of the month.
The governor’s office said close to 210,000 residents could see their medical bills erased. Governor Gretchen Whitmer left the door open for it to potentially expand in the future.
“I think we all have our antennae up because we see those scams all the time. This is real and this is a non-profit that’s coming in and partnering with counties in the state of Michigan. Could we bring other philanthropy in and perhaps draw down more resources? Yes and that’s something that we’ll continue to pursue,” Whitmer told reporters following the press conference.
Money for this year’s debt forgiveness came from the fiscal year 2024 budget. Lawmakers still haven’t finished writing a budget for the upcoming fiscal year that begins on October 1.
The Democratic-controlled state Senate has wanted to pass a full budget at once. Meanwhile, the Republican-led House of Representatives has been pushing for the passage of school and road funding bills side by side.
The House Speaker has previously said it made more sense to wait to see what would and wouldn’t be funded in the federal “Big Beautiful Bill” that passed earlier this month, since the state budget relies so heavily on federal funding.
While talking with reporters Thursday, Whitmer said it would take a long time to figure out how the federal bill that makes up a chunk of President Donald Trump’s agenda would affect state services like Medicaid. She argued the state could adjust its spending as needed.
Still, Whitmer reiterated to reporters that there won’t be a budget without a plan to fund road repairs passed as well.
“We have supplementals, negative and positive, that are always tools for budget adjustments. That being said, here we are in the middle of July, toward the end of July now, and we still have work to do,” Whitmer said. “And I want to be clear, the budget is not done until the roads are done as well.”
During Thursday’s press conference, Whitmer also fielded questions about a state attorney general’s office investigation into a grant approved and eventually rescinded by the Michigan Economic Development Corporation.
Whitmer said she was glad the MEDC eventually canceled the grant.
“Any individual grantee who gets money and is not lawful with it or is inappropriate with those dollars should expect to be held accountable,” Whitmer said.
The governor also responded to questions about a development this week regarding a multi-billion-dollar semiconductor project.
On Wednesday, state officials acknowledged that the project planned for the Flint area had fallen through.
Democrats said the company in question decided against building a new plant anywhere in the U.S. in the face of economic instability at the national level.
Without naming Trump, Whitmer cited uncertainty over tariff policies as a driving force behind that. Despite that, Whitmer says she’s confident a new company will invest in the site.
“I called the President yesterday. I spoke with him to share with him what this development was and how it was very disappointing. He said tell the press we are going to work together and get an even better deal for the state of Michigan and so that’s what I’m telling you,” Whitmer said.
State and local leaders have put significant resources into promoting and preparing Genesee County’s Advanced Manufacturing District for a potential tenant.
