Treasurer Diossa Announces $7 Million in Forgiven Medical Debt for Rhode Islanders

Published on Monday, March 03, 2025

Providence, RI – Today, Rhode Island General Treasurer James A. Diossa announced that over $7 Million in medical debt held by Rhode Islanders has already been forgiven through the State’s Medical Debt Relief Program since its recent launch in October. Nearly 3,000 individuals have benefited from this initiative so far, leveraging approximately $50,000 to purchase medical debt from health care providers. A total of $1 Million was allocated for this program by the General Assembly in the FY2025 budget.

Rhode Islanders whose debt is forgiven will receive Undue Medical Debt branded notification letters in the mail this week detailing the amount of debt forgiven and the former debt holder. This cancellation is a no-strings-attached gift that does not count as earned income or incur taxes, and individuals will have no obligation to repay the debt. There is no application process for the program. Qualifying medical debt will be automatically canceled as it is identified and acquired.

“Many Rhode Islanders face significant challenges due to medical bills, which can prevent access to necessary treatment,” said Treasurer Diossa. “This program provides crucial relief to many who are burdened with medical debt, and I hope to wipe out even more debt soon.I thank the General Assembly for their foresight in passing this legislation.”

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.

Medical debt relief cannot be requested and is source-based, meaning this program can only erase debts in partnership with entities that currently own them. Those who qualify for relief must be current Rhode Island residents and either be four times (400%) or below the federal poverty level 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 program, visit www.Treasury.RI.Gov/Medical-Debt-Relief-Program.

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