A program launched by Gov. Katie Hobbs over a year ago has benefited 352,000 families, who are being notified their medical debt is gone.

Gov. Katie Hobbs has announced that $429 million in medical debt has been erased for hundreds of thousands of Arizonans. Undue Medical Debt, a national nonprofit, has a $10 million contract with the state to buy and cancel medical debt for Arizonans using federal COVID relief dollars.

In 2024, Hobbs announced an initiative to erase $2 billion in medical debt for up to one million Arizonans. Those eligible for debt relief include individuals who earn 400% of the Federal Poverty Level or below and/or individuals who owe at least 5% of their annual income for outstanding bills.