Los Angeles County announces $2 billion Medical Debt Relief Program
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LOS ANGELES (KCAL/KCBS) — Los Angeles County announced its $2 billion Medical Debt Relief Program aimed at helping low-income residents settle past-due bills.
“The launch of this program is a critical step forward in ensuring that those receiving critical medical services do not find themselves experiencing financial harm associated with not being able to afford care,” said Dr. Barbara Ferrer, Director of LA County Department of Public Health.
LA County residents exceeded $2.9 billion in medical debt in 2022, roughly $300 million more than the year before, according to Public Health. The agency said that roughly 785,000 LA County residents, around 10% of adults, are burdened with unpaid medical bills.
The program’s initial payment hopes to use $5 million from the Board of Supervisors to purchase $500 million in debt for pennies on the dollar. Medical centers including MLK Community Hospital in Willowbrook and Adventist Health White Hospital are among the initial healthcare providers parenting with the nonprofit Undue Medical Debt to help pay patients’ bills.
Residents do not need to apply. Anyone who has their debts canceled will receive a letter from LA County and Undue Medical Debt, letting them know that their bills have been paid off.
To qualify, residents must make less than 400% of the federal poverty level, roughly $60,000, and have past-due medical bills. According to the California Department of Housing and Community Development, the median income in LA County is $68,750.
“There are thousands of people in our communities who could work for the rest of their lives and never get out from under the debt they incurred from seeking the care they needed,” Supervisor Janice Hahn said. “It’s absolutely crushing them. This opportunity to relieve that burden is County government at its best.”
In the meantime, if residents receive a medical bill they cannot afford they can visit Public Health’s website for information and resources, including guides for free or discounted hospital services, legal advice and assistance, counseling and tips for handling billing and collections.
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