Los Angeles County announced its $2 billion medical debt relief program, aimed at helping low-income residents pay overdue bills.
“The launch of this program is a critical step forward to ensure that those receiving critical medical services do not suffer financial harm as a result of being unable to afford care,” said Dr. Barbara Ferrer, director of the LA County Department of Public Health. .
According to Public Health, LA County residents had more than $2.9 billion in medical debt in 2022, about $300 million more than the year before. The agency said about 785,000 LA County residents, about 10% of adults, suffer from unpaid medical bills.
The program’s first payment hopes to use $5 million from the Board of Supervisors to buy $500 million in debt at pennies on the dollar. Medical centers including MLK Community Hospital in Willowbrook and Adventist Health White Hospital are among the first healthcare providers to partner with the nonprofit Undue Medical Debt to help pay patients’ bills.
Residents do not need to submit an application. Anyone whose debt is forgiven will receive a letter from LA County and Undue Medical Debt stating that their bills have been paid off.
To qualify, residents must earn less than 400% of the federal poverty level, about $60,000, and have past-due medical bills.
“There are thousands of people in our communities who could work for the rest of their lives and never get out of the debt they incurred seeking the care they needed,” Supervisor Janice Hahn said. “It’s absolutely crushing them. This opportunity to alleviate that burden is provincial government at its best.”
In the meantime, if residents receive a medical bill they can’t pay, they can visit Public Health’s website for information and resources, including guides to free or discounted hospital services, legal advice and assistance, advice and tips for handling bills and collections.
