Los Angeles to Forgive Millions in Medical Debt — How Does It Work?

• 100,000 residents to receive medical relief in Los Angeles
• County allocates $5 million to the program
• Up to $400M in medical debt to be forgiven

A new medical relief program in Los Angeles County is bringing hope to more than 100,000 residents.

This innovative plan, backed by local authorities, aims to fully or partially forgive unpaid medical debt, providing financial relief for thousands of families.

Medical debt is one of the leading causes of poverty and financial stress in the United States.

In Los Angeles, residents face an overwhelming burden.

Medical Relief in Los Angeles: A Crucial Initiative

This project, approved by the Los Angeles County Board of Supervisors, will focus on forgiving more than $400 million in accumulated debt from medical treatments, hospitalizations, and basic health services.

The program, to be implemented in collaboration with RIP Medical Debt, a nonprofit organization, is designed to ease the financial burden on low-income individuals.

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RIP Medical Debt specializes in buying medical debt at reduced prices and forgiving it.

The county will allocate $5 million from the public budget to purchase medical debt on the secondary market at a fraction of its original value.

How Does the Medical Relief Program Work?

For every dollar invested, the program is expected to eliminate between $100 and $200 in actual medical debt.

This strategy maximizes the impact of available funds, allowing more people to receive relief.

Recipients of the program do not need to apply. They will be automatically identified through agreements with hospitals and clinics that sold their debt to RIP Medical Debt.

To qualify, residents must have incomes below 400% of the federal poverty level, hold significant unpaid medical debt, and be current county residents, regardless of immigration status.

The Beneficiaries

Selected residents will receive a letter in the mail informing them that their debt has been forgiven and that they no longer owe anything.

This measure represents direct, hassle-free relief for people struggling with medical debt, according to SoloDinero.

This program is essential in a country where over 100 million people have some form of medical debt.

In California, despite its progressive approach, many still face barriers to accessing health care due to fear of debt.

In Los Angeles, one in five adults has had to choose between paying a medical bill and meeting basic needs.

Medical debt not only affects individuals’ financial health but also has broader consequences.

It can damage credit scores, hinder access to housing, and create emotional stress.

With this initiative, Los Angeles County takes a significant step toward improving the well-being of its most vulnerable residents.