Highlights
- More than $1 billion in medical debt has been erased for Arizonans, Gov. Hobbs announced Wednesday.
- Arizona allocated $30 million in COVID-19 relief funds for the program, which buys debt from providers for pennies on the dollar and forgives it.
- Recipients must earn at or below four times the federal poverty level and owe at least 5% of annual income in medical bills.
- Notification letters begin going out this week; no application is required to receive relief.
More than $1 billion in medical debt has been erased for Arizonans, Governor Katie Hobbs announced Wednesday, the latest milestone in a two-year initiative funded with $30 million in COVID-19 relief dollars.
The program works through a partnership with Undue Medical Debt (formerly RIP Medical Debt), a nonprofit that purchases outstanding medical balances from providers for pennies on the dollar and then forgives them rather than collecting. Officials said the $30 million allocation could ultimately erase up to $2 billion in debt at that leverage ratio.
To qualify, a recipient must earn at or below four times the federal poverty level and owe at least 5% of annual income in outstanding medical bills. There is no application process; those whose debt was erased will receive a letter in the mail, with letters beginning to go out this week.
The announcement marks a significant step up from prior program milestones. KYMA reported Wednesday that the $1 billion figure represents cumulative erasures since the initiative launched. The Governor's office announced in December 2025 that $642 million had been erased for nearly half a million Arizonans at that point.
Hobbs said in a statement that "too many people find themselves choosing between receiving healthcare and putting food on the table, and no person should have to live that way."
One beneficiary, identified only as Brittany, said having $18,000 in debt erased allowed her to focus on her son's recovery. "I could stop worrying constantly about finances and focus on my son's recovery," she said. "I could work on getting my credit score up; I could breathe again."
The next round of notification letters begins this week.
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- AZ Family (3TV/CBS5) retrieved 06/08/2026 00:05
Authored by The Scottsdale Signal. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 06/08/2026 00:05. Every claim traces to a source.
