Medical debt to be canceled for 134K LA County residents, officials say

Medical debt canceled for 134K LA County residents

Medical debt will be paid off for 134,000 low-income residents in LA County, officials announced.

If you get a letter from LA County with a blue seal reading "Undue Medical Bill," don't confuse it with "Unpaid." It's not a joke. Don't throw it away!

LA County is sending out letters to more than 134,000 residents, notifying them that their medical bills have been paid.

It's the LA County Medical Debt Relief Program, which provides immediate relief by purchasing and eliminating medical debt for qualifying residents. The criteria? Earning no more than four times the federal poverty level, or medical debt adding up to more than five times their income.

One in nine county residents are in that position.

The county joined forces with the national nonprofit Undue Medical Debt, which purchases the unpaid debt from people who can't pay their hospital bills. In the secondary market, that debt can be purchased for a fraction of its value—from the medical facilities or collection agencies. So, through an initial investment of $5 million, LA County aims to buy and pay off $500 million in medical debt for low-income residents.

Medical debt forgiveness coming to thousands in LA

Los Angeles County is eliminating medical debt for more than 130,000 Los Angeles County residents. One in 9 people in Los Angeles County suffer from medical debt.

Those people will get a notice in the mail in the next two weeks. They didn't have to apply or do anything. They were identified from their debt, which will disappear.

LA County residents looking to get more information on the program can click here.