Orange, Los Angeles Counties Erase Over $655 Million Medical Debt for 444,000 Residents

Both Orange County, Florida, and Los Angeles County, California, have launched significant medical debt relief programs in partnership with the nonprofit Undue Medical Debt, wiping out hundreds of millions in medical debt for hundreds of thousands of residents. Orange County used $3 million of ARPA funds to erase more than $472.5 million in medical debt for over 310,000 residents, targeting debts that exceeded 5% of household income or households below 400% of the federal poverty line. Similarly, Los Angeles County initiated a medical debt relief program with a $5 million investment to eliminate $183 million in debt for approximately 134,000 low-income residents, with plans to expand relief up to $2 billion through additional funding. Both programs identify eligible debts without requiring applications, focusing on debts held by participating hospitals, providers, and collection agencies, and aim to improve financial stability for populations disproportionately affected by medical expenses. The relief efforts address a widespread issue, with millions of residents in these counties burdened by medical debt, often leading to further financial hardship such as credit card debt and skipped necessities. Officials emphasize that while these programs provide substantial aid, medical debt remains a pervasive challenge in their communities.