Los Angeles County is launching a pilot program that aims to eliminate up to $500 million in medical debt for 150,000 lower-income residents.
The county is allocating $5 million for the program and is partnering with Undue Medical Debt — formerly RIP Medical Debt — a nonprofit that purchases and forgives medical debt for pennies on the dollar, according to a June 25 news release from Los Angeles County Supervisor Janice Hahn.
Medical debt exceeds $2.9 billion for county residents as of 2022, according to the release.
The pilot program is part of a larger initiative being developed in the county to reduce medical debt burdens, according to the release. In October, the board approved a motion directing county departments to research existing strategies and report back with recommendations for future policies that can reduce medical debt in the county. Departments began working with the Medical Debt Coalition on potential prevention and reduction strategies, which culminated in a medical debt summit held in April.