Arizona cancels medical debt for almost half-a-million residents

https://www.knau.org/knau-and-arizona-news/2025-12-22/arizona-cancels-medical-debt-for-almost-half-a-million-residents

40 Comments

  1. >Another more than $200 million in medical debt has been wiped out for Arizonans.

    >And the recipients are going to know who to thank: Gov. Katie Hobbs.

    >The new figure was announced Monday by Allison Sasso. She’s the president and CEO of Undue Medical Debt, a company that agreed earlier this year to use some $10 million in state American Rescue Plan COVID relief dollars to buy up medical debt from hospitals and doctors for a few pennies on the dollar, eliminating a negative mark on the credit reports of those who racked up the bills.

    >All totaled, according to the governor’s office, the program has so far erased $642 million owed by more than 485,000 Arizonans.

    >And under a deal the state cut with Undue Medical, the beneficiaries all get letters crediting not just United Medical but also the governor.

    Way to go, Katie Hobbs! Arizona is so lucky to have her as governor over Kari Lake. Katie actually cares about helping people. We need more governors like her to help alleviate the pressure of medical debt from people’s minds. This is a net positive all around.

  2. This is good, but the concept of buying discount medical debt from a doctor is so degrading to human dignity.

  3. hypermodernvoid on

    Oh please, Tim Walz, do this before the upcoming gubernatorial election and you’ll win by a landslide: even like half of Republicans are cool with universal (government funded/payment-administered) healthcare at this point, and surely excusing medical debt since tons of them have it. Hell, while some of the dumbest and most militantly MAGA are against student debt relief, even with kids who have significant amounts of it – plenty of Republicans actually agreed with that, too.

  4. Waiting for Republicans to scream “Communism!!” and “Socialism!!” about this. Those people are deranged.

  5. TotalEclipse19 on

    Politician does something good for ordinary Americans. That’s a piece of news you won’t hear coming from Washington.

  6. To me, this shows how broken our current system is.

    Back in the day before Obamacare, I founded a startup, and didn’t qualify for insurance.
    OK, I’ll pay cash.

    We talked to our local hospital and asked what the cost was a procedure. They said “we can’t tell you”.

    “You can’t tell me? I’m paying cash, I want to know what the out the door cost is”

    “We can’t tell you. We can only tell you afterwards…”

  7. So I spent the last ~2 years with 100k in medical debt hanging like a guillotine over my family’s head. Picked it up because Anthem used every dirty trick under the sun to dodge paying for my husband’s lifesaving surgery. After hundreds of hours of effort and coordinating with my State Senator + Attorney General, we got it cancelled as of yesterday.

    If you haven’t experienced this, you don’t know how it ruins your life. It feels like the health insurance cartels are swinging an axe at your loved one’s neck and you need to keep piles of money onhand to block the strike, buying you time to appeal. Because even if you’re contesting the payments, your payment plan could fire up any day with no notice. Not to mention that you got in this spot due to health problems that didn’t magically disappear, so you need to be ready to fund the next surgery too if necessary (we probably need 3 total) when you haven’t even settled payment for this one.

    I haven’t vacationed in years. I haven’t been able to invest any of my money (need as much onhand as possible in case), so I got hit hard by inflation. I had to massively reduce funds going to my retirement. I had to move to a high-pay city with better medical care, and I haven’t bought a plane ticket to see my family in years–within my own country it feels like I’m a foreign worker sending remittances to a distant land, isolated from all my connections. I have had to make peace that rest of my life would likely be spent as a medical debt slave. A lifetime of having to take jobs I hate to make enough to stay ahead of just the interest on my debt, all the rewards for my work getting siphoned off to the debtowners. For years, I often haven’t been able to sleep because I can’t stop shaking in rage. And I’ve spent almost every day in fight or flight mode over it, constantly brawling insurance.

    Now that we’ve “won”–victory here means just getting Anthem to do what we’re paying them for btw–it’s actually confusing. I keep mentally reaching for this thing and it’s not there. Like if you’ve gotten so used to glasses for decades and switch to contacts, and keep reaching to adjust your glasses reflexively. That’s the extent to which this constant fight for my family’s life has normalized itself in my everyday life and mental patterns.

    Every single governor needs to do this. And we need to make this the new litmus test.

  8. Reading this as an American in a public hospital in Europe visiting someone in ICU. It’s so crazy how folks here don’t have to worry at all about the medical costs, even private hospitals are cheaper than the copays most folks have in USA. We need universal healthcare ASAP

  9. whoremongering on

    DEMOCRAT Governor Katie Hobbs.

    Hope to see more publicity when Dems do things like this to save average Americans from medical bankruptcy. And calling out republicans for opposing this. Repubs are good at splashing performative self-congratulations all over social media, when they achieve less than this.

  10. Actually , when one in five adults carries past-due medical balances, wiping the slate is economic stimulus with a human face and it didn’t even need a federal fight.

  11. health insurance companies salivating over the prospect of putting 500k+ residents of Arizona back in to massive debt.

  12. Remindmewhen1234 on

    That’s what happens when you let the insurance companies write Healthcare legislation.

  13. Bulky-Bullfrog3707 on

    Put Katie’s name all over the letter they send to make sure everyone knows who did this for them. 

  14. That’s nice but can we fix the system that caused this in the first place so it doesn’t just happen again

  15. Nice, now if only they made it so this situation wasn’t a regular occurrence that needed intervention!

  16. I don’t live in AZ anymore but got a letter telling me that $500 of debt that I have no idea where it even came from had been cancelled. So glad Kari Lake didn’t win. Nice job AZ voters!

  17. I love when the left wing does things for people. It makes me want to vote for them.

    I hate that being an anti-Zionist, which is just an avenue to focus on Jews and express prejudice (because it’s specifically deployed against us), has become a pillar of the left. It targets Jews and legitimizes violence against us, as can be seen since 2023. I really have nowhere to call political home, and can’t vote for them.

  18. AThousandBloodhounds on

    This is good news but medical debt will continue to grow, especially now that the ACA has been systematically sabotaged into irrelevance by Trump Republicans and no longer can provide access to affordable healthcare as it was intended to do.

    A single payer system, like Medicare, is more inevitable that ever.