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. Selected debts will then be purchased for pennies on the dollar and closed.
Residents who are selected will begin receiving letters from Undue and the LA County Medical Office beginning January 2025.
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“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 income
The initial $5 million funding proposal, submitted by Supervisor Janice Hahn and co-authored by Supervisor Holly Mitchell, was approved by the LA County Board of Supervisors in June earlier this year. That money is expected to eliminate $500 million in debt for 150,000 residents.
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.
Program supervisors expected to wipe nearly $800 million in debt across 200,000 people.
After the program is completed, data on its effectiveness and potential scalability will be evaluated for similar future ventures.
Across Los Angeles, one in 10 adults – approximately 785,000 Angelenos – are currently burdened with medical expenses.
