Staff Reports
Connecticut Governor Ned Lamont has announced his plan to cancel up to a whopping $1 billion in medical debt for residents of the state. That’s right, folks – a whole billion dollars. And where does Gov. Lamont plan to get all that cash? Well, he’s looking to leverage a cool $6.5 million in American Rescue Plan Act funds to wipe out the medical debt of about 250,000 lucky residents.
The governor made this jaw-dropping announcement during a TV appearance, proudly declaring that no one in Connecticut should have to face the burden of medical debt. According to Lamont, this debt cancellation will benefit households where medical expenses make up 5% or more of their annual income, or for those earning under 400% of the federal poverty line. And get this – residents who receive this golden ticket won’t have to worry about the IRS swooping in to collect taxes on their cancelled debt.
Connecticut to wipe out $1B in medical debthttps://t.co/P7NyVcyn7U
— choosefairfieldct (@choosefairfield) February 7, 2024
But hold onto your hats, because the Connecticut governor isn’t the only one jumping on the debt cancellation bandwagon. Cities like New York City, New Orleans, and Pittsburgh are all following suit. It’s like Oprah’s “You get debt cancellation, and you get debt cancellation!” But it’s not just cities – New Jersey Gov. Phil Murphy has also hopped on the train, proposing a sweet $10 million pilot program to kiss medical debt goodbye for the Garden State’s residents.
Nationally, an estimated 19% of American households have medical debt, and the big credit reporting agencies are starting to cave under the pressure, eliminating nearly 70% of medical debt from credit reports. This move wipes out billions of dollars in debt, easing the pain for consumers who may have been feeling the financial squeeze.
While some politicians are high-fiving over these plans, it’s hard to ignore the fact that all this debt cancellation is just a big ol’ band-aid on a broken system. For those who’ve paid off their medical debt or never acquired any in the first place, this might leave a sour taste in their mouths. It’s like showing up to a potluck with a bag of chips and salsa and then watching someone else roll in with a five-layer dip and stealing the party spotlight.
But who knows? Maybe this trend of debt cancellation will continue to spread like wildfire, and pretty soon, we’ll all be sippin’ on coconut drinks on Debt-Free Island. But until then, hold onto your wallets, because the debt cancellation train is picking up speed, and it’s making a stop in a city near you.
