Initiative Targets Low-Income Residents with $2 Billion Debt Relief Goal
The Los Angeles County Department of Public Health has launched the Los Angeles County Medical Debt Relief Program, an initiative aimed at addressing the mounting crisis of medical debt that disproportionately affects low-income and vulnerable communities across the region.
The program, developed by the Medical Debt Coalition, will initially wipe out $500 million in medical debt using a $5 million investment approved by the LA County Board of Supervisors through a motion introduced by Supervisors Janice Hahn and Holly Mitchell. By purchasing medical debt for pennies on the dollar, the program targets past-due bills for qualifying low-income residents.
The coalition’s broader goal is to eliminate $2 billion in medical debt for LA County residents, with support from philanthropic partners, health plans, and hospitals. L.A. Care Health Plan has contributed $2 million to the effort, while the Los Angeles County Medical Association has funded an additional $1 million in debt relief.
Participating hospitals include MLK Community Hospital and Adventist Health White Memorial Hospital. These hospitals will partner with Undue Medical Debt, a national nonprofit, to retire medical bills for qualifying residents—those earning up to 400% of the federal poverty level. Residents do not need to apply; they will receive notification by mail when their debts have been canceled.
“There are thousands of people in our communities who could work for the rest of their lives and never get out from under the debt they incurred from seeking the care they needed,” said Supervisor Janice Hahn. “This opportunity to relieve that burden is County government at its best.”
Dr. Barbara Ferrer, Director of the LA County Department of Public Health, called the launch “a critical step forward,” adding, “We are deeply grateful to our many partners who share our commitment to tackling the devastating damage of medical debt. Together, we are working to ensure that every resident has a fair and just opportunity to achieve and maintain good health.”
Medical debt impacts roughly 785,000 adults in LA County—about one in 10 residents—creating barriers to essential healthcare and forcing families to choose between medical treatment and basic needs like housing or food. The issue disproportionately affects low-income households and communities of color, including Latinx, Black, American Indian, and Pacific Islander residents.
In 2022, medical debt in the county surpassed $2.9 billion, up $300 million from the prior year. Even insured residents face risk due to high out-of-pocket costs that can accumulate quickly, undermining financial stability and contributing to delays in necessary medical care.
Residents struggling with unexpected or unmanageable medical bills can visit the LA County Public Health website at publichealth.lacounty.gov/hccp/medicalDebt for resources, including applications for discounted hospital services, legal assistance, and consumer counseling.
