LA County Launches Program to Cancel $800M in Medical Debt for 200K Angelenos
Los Angeles County is tackling medical debt head-on, offering relief to hundreds of thousands of residents burdened by unpaid bills. Through a groundbreaking initiative, the county plans to clear $800 million in medical debt for low-income residents, helping alleviate financial stress for families struggling to make ends meet.
How the Program Works
The Medical Debt Relief Program, launched by the LA County Department of Public Health, works in partnership with the national nonprofit Undue Medical Debt. Hospitals participating in the program agree to settle unpaid medical bills for just pennies on the dollar. This allows the county to eliminate $500 million in medical debt for only $5 million, benefiting 150,000 residents in its initial phase.
County officials aim to eventually wipe out $2 billion in medical debt for eligible residents. Here’s a breakdown of the program’s progress and funding:
LA County Board of Supervisors approved an initial $5 million investment to eliminate $500 million in debt.
LA Care Health Plan added $2 million, while the LA County Medical Association contributed $1 million. These funds will clear an additional $300 million for another 50,000 residents.
In total, clearing $2 billion in medical debt would require just $24 million in funding, a small price to pay for massive financial relief.
Who Qualifies?
To qualify for medical debt cancellation:
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