In the coming weeks, 23,000 residents will see part or all of their medical debt cancelled, Connecticut officials announced on Monday morning at the state Capitol. The measure will erase $30 million in medical debt, providing relief for thousands at a time when the frustration over health care costs has dominated the national conversation. This marks the first wave of a state program that aims to cancel a total of roughly $650 million in medical debt for state residents by 2026. People who qualify for this round of debt cancellation are slated to receive letters in the mail beginning December 23.  “This can be life changing for so many Connecticut residents who are already burdened by medical debt,” said Lt. Gov. Susan Bysiewicz. “It’s really good news, and it’s an early Christmas or holiday gift.”  Residents qualify for debt cancellation if they earn 400% or less of the federal poverty level — about $120,000 or less for a family of four — or if their medical debt makes up 5% or more of their income. Around 15% of households carry medical debt, according to data from the Census Bureau. People in worse health and those living with a disability, as well as Black Americans, are more likely to report medical debt, according to KFF Health.  The state is partnering on the initiative with Undue Medical Debt, a nonprofit that negotiates with hospitals and debt purchasers to buy debt at a steep discount — the organization’s website claims that every $1 donated cancels $100 in medical debt. The nonprofit has worked with state and local governments in New Jersey, Arizona, Los Angeles, New York City and elsewhere. Gov. Ned Lamont originally proposed a statewide medical debt measure in 2023 and negotiated with the legislature to earmark $6.5 million for it with funding from the American Rescue Plan Act. The state then signed a contract to launch the program with Undue Medical Debt in May 2024. The state spent $100,000 of the funding in this first wave, which will forgive the first $30 million of medical debt. (That’s cheaper than the typical rate the nonprofit negotiates, likely due to the age of the debt.) Lawmakers also passed a measure during the most recent legislative session that prevents health care providers from reporting medical debt to credit agencies, shielding residents’ credit scores from the potential adverse financial impacts of seeking care.  “We’re doing everything we can to make sure that this is an emergency you can live through,” Lamont said, “and that you can make sure that you’re taken care of [so] when you come out of the hospital, you don’t have another burden on your shoulders.” The governor added that he’s committed to working with industry leaders on a range of solutions to health care affordability. While Connecticut beneficiaries await notice from Undue Medical Debt, evidence from other states shows the programs can alleviate great stress for recipients. On its website, the nonprofit collects testimonials from people reacting to the news that their debt was cancelled. “After receiving the letter and finding out my debt was abolished, it was such a sigh of relief,” reads one quote from a Texas resident. “The weight on my shoulders just lifted off. It felt like it was an opportunity to move forward.”