Gov. Katie Hobbs announced a plan Monday to use federal funds to pay off medical debt for up to one million Arizonans.
Arizona will partner with Rest In Peace Medical Debt, a non-profit that buys up medical debt from hospitals and other debt holders for pennies on the dollar.
Hobbs says the state will use up to $30 million in federal COVID-19 relief to fund the partnership.
"This is a win-win that will give so many Arizonans a clean slate and open the doors for a better future," Hobbs said in a Monday press conference.
Rest in Peace Medical Debt board member Jeff Smedsrud says that investment could be used to purchase between $1.5 and $2 billion in medical debt, which could provide debt forgiveness for up to one million Arizonans over the next two years.
The program will apply to Arizonans with medical debt equal to or greater than 5% of their income. It will also cover those who earn less than 400% of the federal poverty level, which is approximately $125,000 a year for a family of four.