Delaware Governor Matt Meyer reported results of Delaware’s medical debt elimination initiative, with nearly $19 million in medical debt abolished for more than 18,000 citizens thus far.
The effort is supported by a $500,000 item in the 2026 fiscal year state budget to partner with Undue Medical Debt, a national nonprofit organization, to eliminate up to $50 million in qualifying medical debt. Undue Medical Debt acquires the most burdensome medical debts in bulk for a fraction of their face value, meaning one dollar can erase $100 of medical debt on average.
According to Meyer, Undue Medical Debt has abolished $18.8 million in medical debt for 18,145 individuals across the state. Those receiving relief span all ages, including more than 2,300 young adults aged 18–30, nearly 7,000 residents aged 31–45, more than 4,300 aged 46–60, and over 3,000 Delawareans aged 61 and older.
Meyer said his administration 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.
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. Eligibility is based on financial need. Delaware residents qualify if their household income is at or below 400% 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 be receiving a letter directly from Undue Medical Debt confirming that their medical debt has been eliminated, with letters for the first round of relief set to hit mailboxes between December 19 and December 23, 2025. No action is required from recipients.
Source: Delaware News
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