Home / Health / LA County Erases $180M in Medical Debt for 39,000 Residents
LA County Erases $180M in Medical Debt for 39,000 Residents
4 Dec
Summary
- Over $180 million in medical debt will be erased for 39,000 Los Angeles County residents.
- The relief is part of a pilot program, with over $363 million already erased for 171,000 people.
- No application is needed; eligible residents receive automatic debt relief.
Los Angeles County is significantly reducing the medical debt burden for its residents, with over $180 million in debt being erased for more than 39,000 individuals. This latest wave of relief is part of an ongoing pilot program that has, to date, cleared $363 million for a total of 171,000 people. The program represents a commitment to ensuring that financial hardship does not impede access to necessary medical care.
The initiative, launched in December 2024 with an initial $5 million investment, partners with the nonprofit Undue Medical Debt. Letters will soon be sent to affected residents confirming their debt has been forgiven. Eligibility for this automatic relief is based on having an income at or below 400% of the federal poverty level or medical debt constituting 5% or more of annual income.
While this program aims to erase $500 million in medical debt for low-income residents, the county's total medical debt stands at $2.8 billion. The county health department's announcement highlights the profound impact of this relief, aiming to lift a significant financial burden from families and improve overall well-being within the community.
