Over 134,000 LA County Residents Will Receive Notices of Medical Debt Relief by Next Week as New Data Highlights Need for Continued Efforts

More than 134,000 Los Angeles County residents will begin receiving notices next week as a part of the first wave of medical debt relief, marking a significant step in addressing the financial strain caused by medical costs. The notices, sent by LA County and national nonprofit Undue Medical Debt inform the resident that their medical debt has been permanently retired and offer helpful information for individuals who need help with additional medical bills or are seeking financial assistance.

The amount of debt being relieved through this first round of notices is $183,580,711.32.

Launched in December 2024, the Los Angeles County Medical Debt Relief Program provides immediate financial relief by purchasing and eliminating medical debt for qualifying residents. Through an initial $5 million investment approved by the LA County Board of Supervisors, the program aims to retire $500 million in medical debt for low-income residents, with plans to eliminate up to $2 billion by seeking additional contributions from philanthropic partners, hospitals, and health plans. Through this program, Undue Medical Debt acquires qualifying debts in bulk for a fraction of their face value from provider partners like hospitals and health systems along with collection agencies, meaning on average one dollar donated can erase $100 or more of medical debt.

Eligible residents will receive an Undue Medical Debt and Los Angeles County branded envelope in the mail without any need to apply. The program also includes preventive measures to reduce future medical debt through improved eligibility tools for financial assistance programs and increased access to resources.

This medical debt relief is source-based, meaning only qualifying debts held by participating providers or collectors can be canceled. Relief cannot be requested. To qualify for relief, current LA County residents must be either four times (400%) or below the federal poverty level or have medical debt that totals 5% or more of their annual income.

While relief is beginning to reach many residents, new data shows that medical debt continues to impact nearly 882,000 adults in LA County—about 1 in 9 residents—underscoring the importance of ongoing efforts to support residents.

Key findings from an updated analysis include:

· Medical debt prevalence increased to 11.1% of LA County adults in 2023 from 10.0% in 2022

· Over half (51%) of adults with medical debt have taken on credit card debt to pay medical bills

· Among those with medical debt, 45% report were unable to afford basic necessities, and 72% skipped needed medical care

· Medical debt affects people across insurance statuses, with the uninsured particularly vulnerable (29.4%)

· 42% of the medical debt burden falls on adults living below 200% of the Federal Poverty Level

Significant disparities persist, with Latino/Latine, Black, American Indian/Alaska Native, Native Hawaiian/Pacific Islander, and multiracial adults disproportionately affected by this financial burden.

“If you get a letter in the mail from LA County and Undue Medical Debt this week—open it. We’ve eliminated medical debt for more than 134,000 residents, no strings attached. This is real relief, and it’s hitting mailboxes soon,” said Supervisor Janice Hahn. “This is LA County government at its best. We are seizing an opportunity and making a smart financial decision to make people’s lives better.”

“Medical debt should never stand between our residents and the care they need. This first wave of LA County’s Medical Debt Relief – over $183 million – represents more than just numbers; it’s a commitment to removing the weight of a crushing financial burden, that perpetuates health and financial disparities,” said Supervisor Holly J. Mitchell. “We are committed to tackling the root causes of medical debt, so no one has to choose between seeing a doctor or putting food on the table.”

"Medical debt continues to be a significant burden for too many LA County residents, with the total debt estimated at over $2.9 billion in 2023 in LA County—a staggering amount that has not decreased despite gains in insurance coverage," said Barbara Ferrer, Ph.D., M.P.H., M.Ed., Director of the Los Angeles County Department of Public Health. "While the launch of the Medical Debt Relief Program now brings relief letters to thousands of residents, we continue to work with hospitals and health care providers to improve the quality of financial assistance programs and debt collection practices so that those with limited means are not facing financial distress for seeking medical care. Thanks to the leadership of Supervisors Hahn and Mitchell and to the partnership with Undue Medical Debt, LA County is able to bring real and lasting relief to residents across the County."

A key component of existing efforts to reduce medical debt accumulation rests in ensuring that hospitals and health care providers have robust systems in place to help those with few resources manage a chronic illness and/or medical emergency. To assist with these efforts, the LA County Board of Supervisors adopted an ordinance on September 10, 2024 requiring hospitals in unincorporated Los Angeles to report on debt and financial assistance activities. On April 29, 2025, the Los Angeles City Council unanimously advanced a motion, led by Councilmember Eunisses Hernandez, to extend medical debt data collection to 34 additional hospitals within the City limits. This expansion builds upon efforts to improve the quality of financial assistance programs and debt collection practices in order to reduce medical debt by the LA County Board of Supervisors in September 2024 which apply to hospitals in unincorporated areas.

For more information about medical debt in LA County, visit http://publichealth.lacounty.gov/hccp/medicalDebt/prevent.htm

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