The resolution addresses the significant issue of medical debt affecting many Rhode Islanders, with an estimated 5.2% of the population struggling under its burden. It highlights the detrimental impact of unpaid medical bills on financial security, legal standing, and mental health, particularly among vulnerable groups such as veterans, older adults, individuals with disabilities, and minority populations. The resolution notes that medical debt often arises unexpectedly, even among insured households, leading to severe lifestyle changes, including reduced spending on essential items like food and clothing.

To combat this issue, the resolution proposes an appropriation of $1,000,000 for the fiscal year 2025-2026 to support the Rhode Island Medical Relief Program, which facilitates the purchase, cancellation, and forgiveness of medical debt. This funding aims to alleviate the financial strain on affected individuals and families, as medical debt can often be acquired at a fraction of its original value. The resolution empowers the state controller to manage the disbursement of these funds as needed, reinforcing the state's commitment to addressing the medical debt crisis in Rhode Island.