Medical debt of 210,000 Michiganders forgiven

As Michigan remains without a budget deal for the upcoming fiscal year, Michigan Gov. Gretchen Whitmer, Lt. Gov. Garlin Gilchrist and Sen. Sarah Anthony (D-Lansing) took a moment to celebrate past budget wins at a Thursday press conference.

Thanks to a 4.5 million investment in the state budget for the 2024 fiscal year, nearly 210,000 Michiganders have had their medical debt forgiven through a partnership with Undue Medical Debt, a nonprofit working to acquire medical debt for a fraction of the value in order to provide forgiveness.

“Across the United States, medical debt is the number one cause of bankruptcy.…This is a pain point for so many, keeping them from getting ahead. It includes nearly 700,000 Michiganders who have to choose every day between paying off medical bills or simply putting food on the table and paying their utility bills,” Whitmer said.

This debt does not help anyone get healthier, Gilchrist said, and it disproportionately impacts Black individuals, with 13% of Black Americans carrying medical debt compared to 8% of white Americans.

Allison Sesso, the CEO of Undue Medical Debt emphasized that individuals with medical debt have not done anything wrong, they’ve simply gotten sick.

“The number one predictor of whether or not you end up in medical debt is whether or not you get sick. It is not related to your insurance status or anything else,” Sesso said.

Additionally, Gilchrist and Sesso warned that the recently-approved cuts to Medicaid could worsen this crisis, with Gilchrist slamming the Republican members of Michigan’s Congressional delegation for their votes in favor of the Big One Big Beautiful Bill Act, approving roughly $1 trillion in cuts to the program, which provides health insurance to adults and children with limited income.

However, by purchasing medical debt for pennies to the dollar, Undue Medical Debt has been able to relieve $20 billion in medical debt since its foundation.

“This is not a final solution to the problem of medical debt, but it certainly is a good solution for the people that are impacted today,” Sesso said.

Additionally, the work continues in the Legislature, with Anthony telling attendees the Senate had proposed an additional $5 million in the state budget for medical debt forgiveness, and that she’d been working with Rep. Denise Mentzer (D-Mt. Clemens) and Sen. Jonathan Lindsey (R-Coldwater) to put forth legislation to keep medical debt from counting toward someone’s credit report.

“Regardless if you live in a conservative community or a liberal community, medical debt affects everyone,” Anthony said.

Whitmer takes questions on economic development frustrations, status of state budget
Following remarks, Whitmer met with reporters, where she faced a barrage of questions about the state budget and difficulties with state economic development efforts, including the investigation into the alleged misuse of state grant funds by businesswoman Fay Beydoun.

Whitmer stressed that her executive budget proposals do not include individual grants, as those dollars need to be vetted.

The governor said she was glad the Michigan Economic Development Corporation canceled Beydoun’s grant and that the corporation was working to recoup the dollars.

“I’m hopeful that the Attorney General will help in that effort,” Whitmer said.

With the passage of the One Big Beautiful Bill Act at the federal level, Whitmer said her office was still examining how Congress’s spending cuts would impact this year’s state budget, as well as next year’s budget and the budget three years from now, as not all of the bill’s changes will take effect immediately.

However, Whitmer made one thing on the state budget very clear: “The budget is not done until the roads are done as well,” referencing the state’s need for a permanent road funding solution.

When asked about the recent decision from California-based computer technology company Sandisk’s decision to pull out of a massive semiconductor project in Mundy Township citing economic uncertainty at the national level, Whitmer said she’d expressed her disappointment in the loss to President Donald Trump.

“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,’” Whitmer said. Michigan Advance