First Wave of Relief Part to Relieve Medical Debt for Low-Income Angelenos
In a major step toward easing the financial burden of health care, Los Angeles County will begin notifying more than 134,000 residents next week that their medical debt, totaling more than $183 million, has been permanently eliminated.
The notifications, issued by Los Angeles County in partnership with the national nonprofit Undue Medical Debt, mark the first phase of a sweeping new initiative aimed at combating the medical debt crisis among low-income residents. The notices, arriving in branded envelopes, will also include information on how recipients can access further support for medical expenses or financial hardship.
The relief is part of the Los Angeles County Medical Debt Relief Program, which launched in December 2024 following a $5 million investment approved by the Board of Supervisors. Using a proven model where debt is purchased in bulk for pennies on the dollar, the program intends to eliminate $500 million in medical debt initially, with plans to expand its reach to as much as $2 billion through additional funding from philanthropic donors, hospitals, and insurers.
Unlike traditional aid programs, there is no application process. Eligible residents will automatically receive a letter if their debt qualifies. Relief applies only to debts held by participating hospitals, providers, and collection agencies. To qualify, individuals must either earn less than 400% of the federal poverty level or have medical debt that equals 5% or more of their annual income.
While the initial round of notices is a significant milestone, county officials stress that medical debt remains a widespread issue. A recent analysis shows that 882,000 adults in Los Angeles County—roughly 1 in 9—are currently burdened by medical debt.
- 11.1% of adults in LA County reported medical debt in 2023, up from 10.0% in 2022
- 51% of those with medical debt used credit cards to cover costs
- 72% skipped necessary medical care due to financial concerns
- 45% were unable to afford basic needs like food and housing
- Uninsured residents remain most at risk, with 29.4% reporting medical debt
- 42% of the county’s total medical debt burden is shouldered by individuals living below 200% of the federal poverty level
- Disparities persist, with Latino/Latine, Black, American Indian/Alaska Native, Native Hawaiian/Pacific Islander, and multiracial residents facing disproportionately higher rates of medical debt
In addition to canceling existing debt, the county’s program includes preventative tools aimed at reducing future debt, such as improved access to financial assistance programs and expanded resource awareness.
For more information about medical debt in LA County, visit this page.
