Meyer seeks to relieve medical debt

Gov. Matt Meyer announced a partnership July 29 between the State of Delaware and national nonprofit Undue Medical Debt to eliminate about $50 million in medical debt for thousands of Delawareans.

“Eliminating medical debt restores hope, stability and dignity to people who’ve been unfairly burdened for seeking care,” Meyer said in a press release. “This partnership and the legislation we signed are part of a larger commitment to break down the structural barriers that keep people from getting ahead and building the secure, healthy lives they deserve. We’re building a state where your worst day doesn’t define your future.” 

Eliminating medical debt was included in Meyer’s Fiscal Year 2026 budget, and $500,000 in state funds was used to purchase and eliminate up to $50 million in medical debt for an estimated 17,000 or more Delawareans, he said.

Meyer also signed legislation protecting tenant records and removing medical debt from credit reporting to help Delawareans improve economic stability.  

Through the agreement, officials said Undue Medical Debt will purchase bundled medical debt portfolios from providers like hospitals and commercial debt buyers to then abolish that debt at pennies on the dollar. There is no application process, officials said, and qualifying residents will receive a letter from Undue Medical Debt notifying them that their medical debt has been relieved. 

"I'm incredibly grateful to Gov. Meyer and the State of Delaware for the bold leadership in tackling the medical debt crisis at this critical moment," said Undue Medical Debt CEO and President Allison Sesso. "With recent federal policy changes threatening millions of families' access to health insurance and care in general, partnerships like this one become even more essential in providing relief to those most burdened who might otherwise avoid necessary healthcare for fear of the cost. This program will offer both financial and emotional relief to families who never chose to get sick or face medical emergencies, and we look forward to leveraging state funding to erase qualifying medical debts in the near future." 

To qualify for debt relief, officials said, Delaware residents must have annual household income at or below 400% of the federal poverty level or have medical debt that equals 5% or more of their annual household income. Medical debt relief will be announced in the coming months. 

In other business, Meyer signed Senate Bill 156, sponsored by upstate Democrats Sen. Spiros Mantzavinos and Rep. Kim Williams, that prohibits any reporting of medical debt to consumer credit reporting agencies. The law prevents medical debt from appearing on consumer reports used in credit, housing or employment decisions. The law takes effect in 90 days, and reinforces that medical debt should not be used when people are trying to obtain housing, credit or jobs. 

Meyer also signed SB 115, sponsored by Wilmington Democrat Sen. Tizzy Lockman, which allows individuals in Delaware to petition the court to have certain past eviction records shielded from public view, making them inaccessible in background checks and housing applications. The goal is to reduce long-term barriers to housing and employment, officials said, especially for those who faced eviction due to temporary hardship or have maintained a clean record since.