More than 134,000 Los Angeles County residents will begin receiving notices this week by mail as part of the first wave of medical debt relief under a program launched last year, it was announced last Thursday.
Residents will receive a notice from L.A. County and national nonprofit Undue Medical Debt, informing recipients that their medical debt has been permanently cleared. It will also offer information for individuals who need help with additional medical bills.
The total amount of debt being relieved through this first round of aid is $183,580,711.32.
“If you get a letter in the mail from L.A. County and Undue Medical Debt this week— open it. We’ve eliminated medical debt for more than 134,000 residents, no strings attached,” Los Angeles County Supervisor Janice Hahn said in a statement. “This is real relief, and it’s hitting mailboxes soon.”
Supervisor Holly Mitchell added, “Medical debt should never stand between our residents and the care they need.”
In December 2024, the county launched its Medical Debt Relief Program, providing immediate financial relief by purchasing and eliminating medical debt for qualifying residents.
The Board of Supervisors previously approved an initial $5 million for the program, which aims to retire $500 million in medical debt for low income residents. County officials plan to eliminate up to $2 billion with contributions from philanthropic partners, hospitals and health plans.
Undue Medical Debt acquires debt in bulk for a fraction of their face value from providers such as hospitals and health systems along with collection agencies, according to county officials. So, on average a $1 donation can erase $100 or more of medical debt.
Eligible residents will automatically receive an Undue Medical Debt/L.A. County-branded envelope in the mail without any need to apply. The program also connects residents with tools and resources to further reduce future medical debt.
This medical debt relief is source-based, meaning only qualifying debts held by participating providers or collectors can be canceled. Relief cannot be requested. To qualify for relief, current L.A. County residents must be either at least four times below the federal poverty level or have medical debt that totals 5 percent or more of their annual income. “Medical debt continues to be a significant burden for too many L.A. County residents, with the total debt estimated at over $2.9 billion in 2023 in L.A. County — a staggering amount that has not decreased despite gains in insurance coverage,” county Department of Public Health Director Barbara Ferrer said in a statement.
“While the launch of the Medical Debt Relief Program now brings relief letters to thousands of residents, we continue to work with hospitals and health care providers to improve the quality of financial assistance programs and debt-collection practices so that those with limited means are notfacing financial distress for seeking medical care,” she added.
County officials noted medical debt impacts nearly 882,000 adults in the region or about 1 in 9 residents. An analysis conducted by the county found the following:
— Medical debt prevalence increased to 11.1 percent of L.A. County adults in
2023, up from 10 percent in 2022;
— Over half (51 percent) of adults with medical debt have taken on credit
card debt to pay medical bills;
— Among those with medical debt, 45 percent report being unable to afford
basic necessities, and 72 percent skipped needed medical care;
— Medical debt affects people across insurance statuses, with the
uninsured particularly vulnerable (29.4 percent);
— About 42 percent of medical debt burden falls on adults living below 200 percent
of the Federal Poverty Level; and
— Medical debt significantly impacts Latino, Black, Indigenous,
Indian/Alaska Native, Native Hawaiian/Pacific Islander and multiracial adults
disproportionately.
To help with this program, the county approved an ordinance in
September 2024, requiring hospitals in unincorporated areas to report on debt
and financial assistance activities. The city of Los Angeles approved a similar
policy in April, extending medical debt data collection to 34 additional
hospitals within city limits, which officials expect to enhance its medical
debt relief program.