Latest news with #MedicalDebtReliefProgram
Yahoo
20-05-2025
- Health
- Yahoo
L.A. County is paying off millions in medical debt — no strings attached. Do you qualify?
Did you get a letter in the mail from the County of Los Angeles with the word "Undue" in bold blue? It's not a scam. It's a notification that your medical debt was cleared by the county. More than 134,000 Los Angeles County residents began getting notices in the mail Monday as part of the first wave of medical bill forgiveness made possible by the county's Medical Debt Relief Program. The first round of notices is expected to relieve more than $183 million in debt. The program was launched, in partnership with the nonprofit Undue Medical Debt, in December 2024 with the mission of providing financial relief for eligible residents by purchasing and eliminating the debt. The funds for the program were made possible by an initial $5 million investment approved by the Los Angeles County Board of Supervisors with additional funds from L.A. Care Health Plan and the L.A. County Medical Assn. The goal is to retire $500 million in medical debt for low-income residents, with plans to eliminate as much as $2 billion by seeking additional contributions from philanthropic partners, hospitals and health plans. That could mean the debt of millions of people would be wiped clean. Through this program, the county provides the funding and Undue Medical Debt acquires qualifying debts in bulk for a fraction of their face value from provider partners such as hospitals and health systems along with collection agencies. Far too many residents are "one medical bill away from fiscal catastrophe," said Holly Mitchell, Los Angeles County's 2nd District supervisor. "In 2023 alone, Los Angeles County residents held over $2.9 billion in medical debt," Mitchell said. Read more: Southern California cities top credit card debt list in new study Recently analyzed data from 2023 found that 1 in 9 adults in the county are impacted by medical debt, and "many are low-income families who even with a lifetime of work may never escape it," said Janice Hahn, Los Angeles County's 4th District supervisor. Adults with medical debt burdens are two to three times more likely to be food insecure, delay or forgo necessary medical care or prescriptions and experience housing instability than those without this burden, according to the data. Furthermore, the data say, about half of adults facing medical debt took on credit card debt to pay their medical bills. "This kind of debt often gets bundled and sold to debt collectors pennies on the dollar who go mercilessly after the families and aggressively for the payment," Hahn said. The relief program comes with no strings attached, so you don't have to pay taxes on it. The "Undue" notification in the mail will list how much debt was forgiven and where the debt was owed, such as the hospital, clinic or collector that was trying to collect from you. Since notices began hitting residences Monday, keep your eye out for the letters over the next few weeks. Eligibility for the program is determined by income, family size and whether the healthcare provider that is owed the money has chosen to participate in the program. To qualify for the program you must: Be a resident of Los Angeles County. Earn less or equal to 400% of the federal poverty level or have a medical bill that is 5% or more your annual household income. For example, in 2025, the income for a family of four that is 400% of the federal poverty level is $128,000. Have eligible debt, which means you must have a bill from a hospital or clinic that is participating in the debt relief program, the bill is past due and you are not using a payment plan for the bill. Read more: L.A. County approves $4-billion sex abuse settlement, largest in U.S. history No. If you and your bill qualify for the program, Undue Medical Debt will pay off your debt and you will be notified through the mail. Your bill qualifies for the program if the debt is held by hospitals, clinics or collectors that are participating in the program. The initial participating hospitals are Martin Luther King Jr. Community Hospital and Adventist Health White Memorial Hospital. County supervisors are calling on other debt holders to participate. Relief cannot be requested. If you received a letter from the county's Undue Medical Debt program, get in touch with the program online. If you need help with medical bills, visit the county's Department of Public Health online list of resources for support. Potential resources include applying for free or discounted hospital services, legal advice and consumer counseling. This program is not a scam: If the county has relieved your medical debt, you'll be notified by a letter in the mail from Los Angeles County and Undue Medical Debt. The envelope will have a county seal on it. Keep the letter as part of your records that the medical debt has been forgiven. Beware of alleged debt relief scammers that contact you via text, phone call or email. And don't fall for callers asking you to provide information or payment in exchange for medical debt relief. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Los Angeles Times
20-05-2025
- Health
- Los Angeles Times
L.A. County is paying off millions in medical debt — no strings attached. Do you qualify?
Did you get a letter in the mail from the County of Los Angeles with the word 'Undue' in bold blue? It's not a scam. It's a notification that your medical debt was cleared by the county. More than 134,000 Los Angeles County residents began getting notices in the mail Monday as part of the first wave of medical bill forgiveness made possible by the county's Medical Debt Relief Program. The first round of notices is expected to relieve more than $183 million in debt. The program was launched, in partnership with the nonprofit Undue Medical Debt, in December 2024 with the mission of providing financial relief for eligible residents by purchasing and eliminating the debt. The funds for the program were made possible by an initial $5 million investment approved by the Los Angeles County Board of Supervisors with additional funds from L.A. Care Health Plan and the L.A. County Medical Assn. The goal is to retire $500 million in medical debt for low-income residents, with plans to eliminate as much as $2 billion by seeking additional contributions from philanthropic partners, hospitals and health plans. That could mean the debt of millions of people would be wiped clean. Through this program, the county provides the funding and Undue Medical Debt acquires qualifying debts in bulk for a fraction of their face value from provider partners such as hospitals and health systems along with collection agencies. Far too many residents are 'one medical bill away from fiscal catastrophe,' said Holly Mitchell, Los Angeles County's 2nd District supervisor. 'In 2023 alone, Los Angeles County residents held over $2.9 billion in medical debt,' Mitchell said. Recently analyzed data from 2023 found that 1 in 9 adults in the county are impacted by medical debt, and 'many are low-income families who even with a lifetime of work may never escape it,' said Janice Hahn, Los Angeles County's 4th District supervisor. Adults with medical debt burdens are two to three times more likely to be food insecure, delay or forgo necessary medical care or prescriptions and experience housing instability than those without this burden, according to the data. Furthermore, the data say, about half of adults facing medical debt took on credit card debt to pay their medical bills. 'This kind of debt often gets bundled and sold to debt collectors pennies on the dollar who go mercilessly after the families and aggressively for the payment,' Hahn said. The relief program comes with no strings attached, so you don't have to pay taxes on it. The 'Undue' notification in the mail will list how much debt was forgiven and where the debt was owed, such as the hospital, clinic or collector that was trying to collect from you. Since notices began hitting residences Monday, keep your eye out for the letters over the next few weeks. Eligibility for the program is determined by income, family size and whether the healthcare provider that is owed the money has chosen to participate in the program. To qualify for the program you must: No. If you and your bill qualify for the program, Undue Medical Debt will pay off your debt and you will be notified through the mail. Your bill qualifies for the program if the debt is held by hospitals, clinics or collectors that are participating in the program. The initial participating hospitals are Martin Luther King Jr. Community Hospital and Adventist Health White Memorial Hospital. County supervisors are calling on other debt holders to participate. Relief cannot be requested. If you received a letter from the county's Undue Medical Debt program, get in touch with the program online. If you need help with medical bills, visit the county's Department of Public Health online list of resources for support. Potential resources include applying for free or discounted hospital services, legal advice and consumer counseling. This program is not a scam: If the county has relieved your medical debt, you'll be notified by a letter in the mail from Los Angeles County and Undue Medical Debt. The envelope will have a county seal on it. Keep the letter as part of your records that the medical debt has been forgiven. Beware of alleged debt relief scammers that contact you via text, phone call or email. And don't fall for callers asking you to provide information or payment in exchange for medical debt relief.
Yahoo
04-03-2025
- Health
- Yahoo
RI forgives more than $7M in medical debt through new initiative
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. RELATED: Rhode Island launches new medical debt relief program '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. LEARN MORE: Rhode Island Medical Debt Relief Program 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. Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
26-02-2025
- Health
- Yahoo
More than $220M in Illinois medical debt erased in latest round of relief
CHICAGO, Ill. (WTVO) — Nearly 170,000 Illinois residents will have their medical debt erased, part of the latest round of relief totaling $220 million. In total, the Medical Debt Relief Program has abolished more than $345 million for nearly 270,000 since the program began. 'We started this program with a simple premise: in a healthy and functioning society, no one should be in financial ruin simply because they get sick,' said Gov. JB Pritzker. 'This program makes a major impact on the lives of the most vulnerable Illinoisans while also maintaining our commitment to fiscal responsibility with a fantastic return on investment—the gold standard for this kind of work.' The Department of Healthcare and Family Services partners with Undue Medical Debt, a national charity, to administer the program. The initiative was launched in 2024 with the goal of erasing $1 billion of medical debt over several years. The program targets residents with a household income at or below 400% of the federal poverty level, or those whose medical debt is at or exceeds 5% of their household income. For each dollar spent on medical debt buyback, the relief program erases approximately $170 in medical debt for patients. So far, the state has spent $2 million on the program, with a $15 million appropriation in the Fiscal Year 2026 budget. According to the Governor's Office, 'Medical debt disproportionately affects people of color—Black Illinoisans are 50% more likely to accrue medical debt than their white peers.' The program has partnered with hospitals throughout the state to provide medical debt relief for their patience. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
