Treasurer Mike Pieciak says a small state investment could erase up to $100 million of the medical debts plaguing some of Vermont’s lowest-income residents. Pieciak is proposing a one-time, $1 million relief program through which the state would purchase the debts for pennies on the dollar, then forgive them. It is an attempt to reduce the burden of unpaid medical bills at a time when ballooning health care costs are forcing some people to think twice before seeking care. “The benefits of this proposal will be felt in every corner of the state,” Pieciak said at a press conference on Tuesday. An estimated 60,000 Vermonters have medical debt that amounts to $155 million, according to Pieciak. That's in part because while almost every resident has some form of health insurance, roughly a third of Vermonters are considered “underinsured,” meaning their policies may not be sufficient to cover either their current expenses or serious medical events. Mike Fisher, Vermont's health care advocate, said he routinely hears from people who are anxious and even ashamed because of bills they can't pay. "Medical debt is a structural outcome," Fisher said. "It's something we know will happen based on the way our health care system is structured." Democratic lawmakers plan to introduce a bill in the coming days to give Pieciak the authority to launch the program. No new taxes or fees would be necessary. Instead, Pieciak has proposed using money already appropriated to his office for the purpose of buying down state bonds. “This program would have a bigger direct impact on Vermonters financially, from a health perspective, and from an emotional perspective,” he said in an interview. The program would be run by Undue Medical Debt, a national nonprofit that has overseen similar programs in 20 other cities and states. About two-thirds of the total medical debt held in Vermont may be eligible for relief, according to the treasurer’s office. Undue Medical Debt typically targets long-standing debts, or those between 18 months and 7 years old. Beneficiaries must meet certain eligibility requirements, such as that they earn either less than four times the federal poverty level — about $100,000 for a family of three — or hold debts that exceed 5 percent of their income. [content-2] The nonprofit says it can erase an average of $100 in debt for every dollar invested. “Medical debts are bought and sold in this country like a…