In mid-July, Hawaii Governor Josh Green signed Senate Bill 3025 into law as part of Act 220, establishing the Medical Debt Acquisition and Forgiveness Program, joining several other states and cities that have partnered with Undue Medical Debt to purchase and forgive the debt.
The Medical Debt Acquisition and Forgiveness Program requires the Office of Wellness and Resilience to develop, implement, and administer the program to acquire and forgive outstanding medical debt for residents of the state, subject to the availability of the funds. SB 3025 also requires a report to the legislature of the progress of developing, implementing and administering of the program. As a partner of the state, Undue Medical Debt purchases portfolios directly from collection agencies and healthcare creditors for eligible individuals. These individuals will be identified based on algorithms, and relief is restricted to those that meet at least one of the two following financial criteria.
- Has a household income at or below 400% of the Federal Poverty Level for Hawaii (equivalent to approximately $140,000 for a family of four).
- An adjusted gross income under $100,000 with qualifying medical debt representing 5% or more of their annual household income.
According to a release from Governor Green, as many as 50,000 residents may qualify for relief totaling more than $91 million. The law went into effect on July 1, 2026 according to the published record.
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