Over $363 Million in Medical Debt Relieved for Low-Income Los Angeles County Residents

LOS ANGELES — The Department of Public Health Dec. 2 announced that over $363 million in medical debt has been permanently erased to date for more than 171,000 Los Angeles County residents as part of the LA County Medical Debt Relief Pilot Program, a landmark initiative to reduce the financial burden of medical debt and advance health equity across the county.

In the coming days, another wave of residents will receive letters notifying them that their medical debt has been retired, with no application required. The program, launched in December 2024 and administered in partnership with the national nonprofit Undue Medical Debt, is designed to bring real relief to residents who have been most impacted by medical costs.

Through an initial $5 million investment approved by the LA County Board of Supervisors, the Medical Debt Relief Pilot Program was originally authored by Supervisors Janice Hahn and Holly J. Mitchell, who led the Board action to establish the initiative and secure its initial funding. The county’s goal is to retire an estimated $500 million in medical debt for low-income residents, representing nearly a quarter of the total $2.9 billion of medical debt held across Los Angeles County. This most recent wave of debt relief will erase over $180 million in medical debt for more than 39,000 individuals.

The Medical Debt Relief Program purchases qualifying debts from partnered hospitals, health systems, and collection agencies for a fraction of their face value.

Relief cannot be requested. It is granted automatically to eligible Los Angeles County residents whose debt is held by participating providers. To qualify, residents must have a household income at or below 400% of the federal poverty level or medical debt that equals 5% or more of their annual income. Recipients will receive an official letter from Undue Medical Debt and Los Angeles County confirming that their debt has been permanently forgiven.

“If you get a letter in the mail from LA County and Undue Medical Debt — open it. We’ve eliminated medical debt for thousands more residents, with no strings attached. This is real relief for people who need it,” said Supervisor Janice Hahn. “This is LA County doing what government should do: making smart, compassionate decisions that make people’s lives better.”

The County continues to expand partnerships with local hospitals and health systems to grow the reach of the Medical Debt Relief Program. 

Details: publichealth.lacounty.gov/RelieveMedicalDebt