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Millions of dollars in medical debt could be wiped out in the coming months for some Los Angeles County residents thanks to a new program.
The county’s medical debt relief pilot program launched late Monday afternoon, taking the first step in combating the $2.9 billion in medical debt plaguing low-income Angeleno residents across the city. Unlike previous debt relief programs, Angelenos cannot apply directly.
Instead, the Los Angeles Department of Public Health has partnered with the nonprofit organization Undue Medical Debt to selectively repay the debt through participating hospitals that own the debt. The selected receivables are purchased and closed for $1.
Selected residents will begin receiving letters from Andu and the Los Angeles County Health Care Department starting in January 2025.
“People should not have this on their credit card,” said Jerry Abraham, director of Kedren Health Services and Public Health. “People should not think about driving to Tijuana to get the treatment they need.”
Participating hospitals include Martin Luther King Community Hospital and Adventist Health White Memorial Hospital. All hospitals in Los Angeles County are invited to participate, and more hospitals are expected to join the program.
For your debt to qualify, you must be a Los Angeles County resident with a past due bill that is not on a payment plan. You must also have an income at or below 400% of the federal poverty level or owe the hospital at least 5% of your annual household income.
The initial $5 million funding proposal, submitted by Supervisor Janice Hahn and co-authored by Supervisor Holly Mitchell, was approved by the Los Angeles County Board of Supervisors in June of this year. The funding is expected to eliminate $500 million in debt for 150,000 residents.
LA Care Health Plan also contributed an additional $2 million, and the LA County Medical Association contributed another $1 million, for a total of $8 million.
Program overseers expected to wipe out nearly $800 million in debt from 200,000 people.
After the program is completed, data regarding its effectiveness and potential scalability will be evaluated for future similar ventures.
Across Los Angeles, one in 10 adults, or approximately 785,000 Angelenos, currently have medical costs.
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