Millions of dollars of medical debt could be erased within the next several months for some residents in LA County thanks to a new program.
The county’s medical debt relief pilot program launched late Monday afternoon and began the first step in a battle against $2.9 billion of medical debt plaguing low-income Angelenos across the city. Unlike previous debt relief programs, Angelenos are unable to apply directly.Instead, the Los Angeles Public Health Department has teamed up with nonprofit Undue Medical Debt to selectively pay off debts through participating hospitals who own it.
Residents who are selected will begin receiving letters from Undue and the LA County Medical Office beginning January 2025.“People should not be putting this on their credit card,” said Kedren Health Director of Integrated Services and Public Health ar Jerry Abraham. “People should not be contemplating the drive down to Tijuana to get the care they need.”
Participating hospitals include Martin Luther King Community Hospital and Adventist Health White Memorial Hospital. All hospitals within LA County have been invited to participate, with more expected to join the program. For a debt to qualify, a person must be an LA County resident with a past due bill that is not on a payment plan. They must also either earn less than or equal to 400% of the federal poverty level or owe a hospital 5% or more of its annual household incomewas approved by the LA County Board of Supervisors in June earlier this year.
The LA Care Health Plan also contributed an additional $2 million alongside another $1 million from the LA County Medical Association for a total of $8 million.After the program is completed, data on its effectiveness and potential scalability will be evaluated for similar future ventures.
Health Care Los Angeles County
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