LA, Central Florida Erase Hundreds of Millions in Medical Debt

Local governments in both Central Florida and Los Angeles County have partnered with the nonprofit Undue Medical Debt to eliminate substantial medical debt burdens for residents. In Central Florida, over 310,000 individuals had nearly $472.5 million in medical debt forgiven, funded by the American Rescue Plan Act and targeted to assist those most affected by poverty. Meanwhile, more than 134,000 residents in Los Angeles County are receiving notifications that $183.5 million in medical debt has been canceled, with plans to potentially erase up to $2 billion in total. Both programs focus on low-income populations, automatically identifying eligible residents so no application is needed. The initiatives aim to remove barriers to medical care and underscore the widespread impact of medical debt in the U.S. The nonprofit acquires debt for a fraction of its value, allowing public and philanthropic resources to go further.