DELAWARE- Governor Matt Meyer announced on Tuesday significant progress in Delaware’s medical debt elimination initiative, with nearly $19 million in medical debt gone for more than 18,000 Delawareans so far.
The effort is supported by a $500,000 investment included in the FY2026 budget to partner with Undue Medical Debt, a national nonprofit organization, to eliminate up to $50 million in qualifying medical debt for Delawareans. Undue Medical Debt acquires medical debts in bulk for a fraction of their face value, meaning one dollar can erase $100 of medical debt on average, said the governor's office.
“Medical debt can follow Americans for years, limiting opportunity and creating a burden that no one deserves to carry,” Meyer said. “With this first $19 million in debt wiped away, we’re showing what’s possible when states invest in practical solutions to deliver real relief. We’re already helping over 18,000 Delawareans sleep easier this holiday season, and we look forward to more good news in 2026.”
To date, the nonprofit has rid of $18.8 million in medical debt for 18,145 people across the first state. The administration said it will continue working with Undue Medical Debt to complete additional debt purchases in the months ahead, with the goal of reaching up to $50 million in total medical debt relief for Delawareans.
"Medical debt is both a financial and emotional burden; no one chooses to get sick, be in an accident, or have a chronic condition. This partnership will provide welcome relief to families facing financial hardship simply from seeking necessary care, and we look forward to continuing our work with Delaware leaders to help even more residents in the new year." said Undue Medical Debt CEO and President Allison Sesso.
How it Works
Undue Medical Debt purchases bundled medical debt portfolios from hospitals and commercial debt buyers for pennies on the dollar and then abolishes that debt entirely. There is no application process and eligibility is based on financial need. Delaware residents qualify if their household income is at or below 400 percent of the federal poverty level, roughly $100,000 for a family of three, or if their medical debt equals five percent or more of their annual household income.
Qualifying residents will receive a letter directly from the nonprofit confirms their medical debt has been eliminated, with letters for the first round of relief set to hit mailboxes between Dec. 19 and Dec. 23, said the governor's office. The letter functions as a receipt of debt relief.