In a transformative effort to alleviate the burden of medical debt for low-income residents, Los Angeles County has launched an innovative debt relief pilot program. This initiative, which began Monday, marks a crucial step in tackling the staggering $2.9 billion in medical debt faced by many Angelenos.
Unlike conventional programs, this initiative does not allow residents to apply directly. Instead, the county’s Department of Public Health has partnered with the nonprofit organization Undue Medical Debt to identify and pay off qualifying debts. These debts will be purchased from participating hospitals at a fraction of their original cost and then forgiven entirely.
Starting January 2025, selected individuals will receive notification letters from Undue Medical Debt and the LA County Medical Office, informing them of their inclusion in the program.
“People should not be putting this on their credit card or contemplating driving to Tijuana for necessary care,” emphasized Jerry Abraham, Director of Integrated Services and Public Health at Kedren Health.
Participating Hospitals and Eligibility Criteria
Hospitals such as Martin Luther King Community Hospital and Adventist Health White Memorial have already joined the program, with more expected to follow. All LA County hospitals have been invited to participate in this collaborative effort.
To qualify for the program, individuals must:
- Reside in LA County.
- Have a past-due medical bill that is not part of an existing payment plan.
- Earn less than or equal to 400% of the federal poverty level or owe a hospital an amount exceeding 5% of their annual household income.
Funding and Impact
The program’s initial funding, a $5 million proposal spearheaded by Supervisors Janice Hahn and Holly Mitchell, was approved by the LA County Board of Supervisors in June 2024. This amount is expected to eliminate $500 million in medical debt for approximately 150,000 residents.
Additional contributions include $2 million from the LA Care Health Plan and $1 million from the LA County Medical Association, bringing the total funding to $8 million. With these combined resources, program officials anticipate wiping out nearly $800 million in medical debt for 200,000 individuals.
A Broader Vision for Change
Medical debt continues to weigh heavily on LA County residents, with one in ten adults—about 785,000 people—facing unpaid medical bills. By the end of this pilot program, its effectiveness and scalability will be thoroughly assessed to inform potential expansion into similar initiatives in the future.
This pioneering approach not only offers hope to those drowning in medical debt but also sets a precedent for addressing this nationwide crisis. For thousands of Angelenos, a brighter, debt-free future may be just around the corner.
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