Is Forgiveness Enough: A Study on the Effectiveness of Medical Debt Forgiveness Programs in the Chicago Area

Medical debt is a problem impacting millions around the United States. In response to its growing prevalence, many governments, hospitals, and non-profit organizations, including many in the Chicago area, have implemented debt forgiveness programs. The implementation of these programs raises the important policy question of the extent to which they are successful in remedying the harms medical debt introduces into individuals’ lives. This paper studies impacts of medical debt forgiveness programs in three key domains: healthcare utilization, financial flexibility, and mental well-being. By conducting a series of semi-structured interviews with community health workers, researchers, journalists, and health policy specialists around the Chicago area, this paper evaluates the success of Chicago’s various medical debt relief initiatives. I find that the healthcare utilization and financial effects of debt relief programs are largely dependent on a person’s personal circumstances while the mental health impacts appear to be generally positive across a wide range of contexts. These findings can help inform policy decisions about how debt relief programs should be implemented what programs can best supplement them.