Under the pilot program, the Department shall provide grant funding to a nonprofit medical debt relief coordinator to use the grant funds and any other private funds available to negotiate and settle, to the extent possible, the medical debt of eligible residents owed to hospitals and other health care providers and entities. The hospitals and other health care providers and entities may be located outside of the State of Illinois, so long as the negotiation and settlement of medical debt is on behalf of an eligible resident.

N/A - state law

30 ILCS 105/5.1015; 30 ILCS 105/6z-140 and Public Act 103-0647.

No current Administrative Rules

HFS shall establish a Medical Debt Relief Pilot Program to discharge the medical debt of eligible residents.

Yes

N/A

Nonprofit Organizations;

Per Public Act 103-0647, "Nonprofit medical debt relief coordinator" means a nonprofit organization that is experienced in locating, acquiring, and relieving medical debt for individuals and that is able to discharge medical debt of an eligible resident in a manner that does not result in a taxable event for the resident. Additionally, per Public Act 103-0647, the nonprofit medical debt relief coordinator shall: (1) Identify eligible residents who qualify for the pilot program. (2) Review the medical debt accounts of each commercial debt collection agency or health care provider willing to sell medical debt accounts of eligible residents. (3) Conduct an outreach pilot program with hospitals, hospital systems, and other providers and entities about the benefits of the Medical Debt Relief Pilot Program. Such outreach shall first be initiated with safety-net hospitals. (4) Negotiate and acquire medical debt of eligible residents from health care providers and medical debt collection agencies. (5) Within 60 days of the acquisition of an eligible resident's medical debt, notify all eligible residents whose medical debt has been discharged under the pilot program, in a manner approved by the Department, that they no longer have specified medical debt owed to the relevant health care provider or commercial debt collection agency. (6) Not attempt to seek payment from an eligible resident for medical debt purchased by the nonprofit medical debt relief coordinator. (7) To the extent possible, give priority to hospitals and providers who serve a high percentage of volume of customers and providers located in disproportionately impacted area zip codes. The Department shall provide an annual report to the Governor and General Assembly that includes, but is not limited to: (1) The amount of medical debt purchased and discharged under the pilot program. (2) The number of eligible residents who received medical debt relief under the pilot program. (3) The demographic characteristics of the eligible residents, including, but not limited to, race, ethnicity, income level, zip code, and insurance status. (4) The number and characteristics of health care providers from whom medical debt was purchased and discharged, including, but not limited to, geography and payor mix. The Department shall adopt any rules necessary to implement this Act.

Per Public Act 103-0647, "Eligible resident" means an individual who: (1) is a resident of the State of Illinois; and (2) has a household income at or below 400% of the federal poverty guidelines or who has medical debt equal to 5% or more of the individual's household income.

Project Grants

Healthcare

Registration and pre-qualification through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.grants.illinois.gov/portal.

Registration and pre-qualification through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.grants.illinois.gov/portal.

The potential applicant will be contacted directly by the Department and provided additional information regarding the application requirements and necessary documentation needed to submit a complete application packet. The grantee will be required to demonstrate it will spend the funds received.

The potential applicant will be contacted directly by the Department and provided additional information regarding the application requirements and necessary documentation needed to submit a complete application packet. The grantee will be required to demonstrate how it will spend the funds received.

The Department will make direct contact with Award recipient. There is only one experienced nonprofit organization who implements a medical debt relief program in the United States for other cities and states who would be eligible to receive these funds. Based on the number of eligible entities, this will not be a competitive grant and a merit-based review would not be necessary.

N/A

N/A - only one eligible entity

N/A

Pilot program subject to appropriation.

None

To discharge the medical debt of eligible residents as defined in the Medical Debt Relief Act. Based on a budget approved by the Department, the grant funding may also be used for any administrative services provided by the nonprofit medical debt relief coordinator to discharge the medical debt of eligible residents.

Quarterly reporting using templates developed by the awardee. Additional monthly performance metric reporting and ad hoc reports may be requested by HFS for additional program oversight and to inform the statutorily required annual report to the Governor and General Assembly that includes, but is not limited to: (1) The amount of medical debt purchased and discharged under the pilot program. (2) The number of eligible residents who received medical debt relief under the pilot program. (3) The demographic characteristics of the eligible residents, including, but not limited to, race, ethnicity, income level, zip code, and insurance status. (4) The number and characteristics of health care providers from whom medical debt was purchased and discharged, including, but not limited to, geography and payor mix. The Department shall adopt any rules necessary to implement this Act.

As per JCAR Title 44 Illinois Administrative Code 7000.90.

Grantees must maintain for three (3) years from the date of submission of the final expenditure report, adequate books, all financial records and, supporting documents, statistical records, and all other records pertinent to this Award, adequate to comply with 2 CFR 200.334 and 44 Ill. Admin. Code 7000.430(a) and (b).

0321-478-65-4900-00-00

$10,000,000 in state GRF. Private donations may be added to the Medical Debt Relief Pilot Program Fund to increase the amount available. As a result, the General Assembly enacted a $15,000,000 appropriation from the Medical Debt Relief Pilot Program Fund.

$10,000,000 in state GRF. Private donations may be added to the Medical Debt Relief Pilot Program Fund to increase the amount available. As a result, the General Assembly enacted a $15,000,000 appropriation from the Medical Debt Relief Pilot Program Fund.

Results to be achieved as a result of the program: Provide grant funding to a nonprofit medical debt relief coordinator to relieve thousands of families from the burden of medical debt.

PA 103-0647. Cook County launched a prior successful effort to erase medical debt obligations for Cook County residents in partnership with a national nonprofit organization. https://arpa.cookcountyil.gov/medical-debt-relief-initiative

Statewide

Springfield, IL

Program specific page will be added to https://hfs.illinois.gov/.

N/A

N/A

FY 2025 : $10,000,000