Treasurer Diossa Relieves Additional $3.5 Million in Medical Debt for over 3,000 Rhode Islanders
Published on Wednesday, May 14, 2025
For Immediate Release
Date: May 14, 2025
Contact: Carla Rojo, Director of Communications
Providence, RI – Today, Rhode Island General Treasurer James A. Diossa announced that an additional $3.5 million in medical debt, held by over 3,200 Rhode Islanders has been forgiven through the state’s Medical Debt Relief Program. For those benefiting from medical debt relief, Undue Medical Debt branded envelopes will be arriving in the mail next week without any need to apply.
To date, the program has relieved more than $10 million in medical debt, helping more than 6,000 Rhode Islanders. This latest effort leveraged just $15,000 in public funds to eliminate burdensome debt for thousands of residents. Undue Medical Debt acquires qualifying debts, belonging to those least able to pay, in bulk for a fraction of their face value meaning on average one dollar donated can erase $100 or more of medical debt.
“Medical debt often adds stress, fees, and barriers to financial recovery,” said Treasurer Diossa. “By actively searching for and working with debt collectors and hospitals, we’re relieving Rhode Islanders of long-standing burdens and helping them move forward with dignity. This is precisely why we appreciate the General Assembly’s vision and support.”
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 is source-based, meaning only qualifying debts held by participating providers or collectors can be canceled and 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 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 or to see what a letter looks like, visit www.Treasury.RI.Gov/Medical-Debt-Relief-Program.
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