PROVIDENCE, R.I. (WPRI) — The Rhode Island Medical Debt Relief Program, which launched last fall, has already forgiven more than $7 million worth of unpaid medical debt, General Treasurer James Diossa announced Monday.

Diossa said more than 3,000 Rhode Islanders have benefited from the initiative, which purchases, cancels and forgives qualifying medical debt. So far, the initiative has leveraged approximately $50,000 to purchase medical debt from health care providers.

The state treasury teamed up with Undue Medical Debt to launch the program, for which the R.I. General Assembly allocated $1 million, back in October.

“Many Rhode Islanders face significant challenges due to medical bills, which can prevent access to necessary treatment,” Diossa said. “This program provides crucial relief to many who are burdened with medical debt, and I hope to wipe out even more debt soon.”

Undue Medical Debt is a national charity that specializes in purchasing medical debt from healthcare providers and debt collectors. To date, the charity has abolished nearly $15 billion worth of medical debt nationwide.

Rhode Islanders whose medical debt has already been forgiven will receive Undue Medical Debt-branded notification letters in the mail this week detailing the amount of debt forgiven and the former debt holder.

Medical debt forgiven through the initiative is considered a no-strings-attached gift that does not count as earned income or incur taxes. There is no application process for the program, and qualifying debt will automatically be canceled as it is identified and acquired.

Rhode Islanders are eligible for relief if their medical debt equals 5% or more of their estimated annual income or if their estimated annual income is at or below 400% of the federal poverty line.

Diossa plans on making subsequent announcements as more medical debt is acquired.