Los Angeles County eyeing $2B medical debt relief plan

A June report from the Los Angeles County Department of Public Health found that county residents had more than $2.6 billion in outstanding medical debt as of 2021. Now county officials are considering a plan that could forgive more than $2 billion in medical debt. 

The county's board of supervisors passed a resolution asking county executives to consider a plan to purchase and forgive medical debt. 

"The Department of Public Health estimates that an investment of $24 million could lead to the possible relief of $2 billion in medical debt over 2-3 years of sustained funding," the board of supervisors said in its motion. 

The county is the largest municipality in the country considering a medical debt relief plan, the Los Angeles Times reported Oct. 3. 

In July 2022, Cook County, Ill., became the first municipality to put together a medical debt relief plan, announcing it was aiming to relieve more than $1 billion in debt in a partnership with RIP Medical Debt. The county said in May the first round of forgiveness erased nearly $80 million in debt for 73,000 residents.  

Since then at least 30 cities, counties and states have considered similar plans, RIP Medical Debt told the Times

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