Los Angeles County Launches $2 Billion Medical Debt Relief Program

Los Angeles County has launched a Medical Debt Relief Program aimed at alleviating medical debt for low-income residents, with an initial goal of canceling $2 billion in medical debt. Funded by a $5 million investment from the county and additional contributions from health organizations, the program will initially erase $500 million in medical debt by purchasing debts for pennies on the dollar. Approximately 785,000 residents are affected, with many owing nearly $3 billion collectively, and the initiative is designed to assist those earning up to 400% of the federal poverty level. Residents who qualify will automatically receive notifications of their debt cancellations starting in January 2025, with no application necessary. The program is a collaboration with the nonprofit Undue Medical Debt and participating hospitals, aiming to combat the financial strain that leads to bankruptcy and worsens health disparities in vulnerable communities. Officials emphasize that access to healthcare should not lead to financial ruin, and the initiative represents a significant step toward addressing this crisis.