December 16, 2024 - Public Health Launches Los Angeles County Medical Debt Relief Program

The Los Angeles County Department of Public Health today launched the Los Angeles County Medical Debt Relief Program, an initiative designed by the Medical Debt Coalition, which is working together to address the growing crisis of medical debt that disproportionately affects vulnerable communities across the County.

The Medical Debt Relief Program will initially eliminate $500 million in debt by leveraging a $5 million investment from a motion introduced by Supervisors Hahn and Mitchell, approved by the LA County Board of Supervisors, to purchase medical debt for pennies on the dollar for low-income residents.

The Medical Debt Coalition, a multi-sector group, seeks to reach the goal of eliminating $2 billion in medical debt for Los Angeles County residents with continued contributions from philanthropic partners, hospitals, and health plans. L.A. Care Health Plan is supporting this effort with a $2 million contribution for debt relief and critically, its prevention, by expanding the availability of tools to improve financial assistance programs. The Los Angeles County Medical Association has also contributed funds to relieve another $1 million of medical debt.

Initial participating hospitals include MLK Community Hospital and Adventist Health White Memorial Hospital, which will work with the national non-profit organization Undue Medical Debt to retire qualifying medical debt and close accounts. Qualifying medical debts are past due medical bills owed by Los Angeles County residents who earn up to 400% of the federal poverty level (FPL). Residents with past due medical bills do not need to apply and will receive a letter from Los Angeles County and Undue Medical Debt notifying them that their debt has been fully canceled.

"There are thousands of people in our communities who could work for the rest of their lives and never get out from under the debt they incurred from seeking the care they needed. It's absolutely crushing them. This opportunity to relieve that burden is County government at its best," said Supervisor Janice Hahn. "I'm thankful to our partners on this program. Together we're going to help transform lives for some our most vulnerable residents."

"The launch of this program is a critical step forward in ensuring that those receiving critical medical services do not find themselves experiencing financial harm associated with not being able to afford care," said Dr. Barbara Ferrer, Ph.D., M.P.H., M.Ed., Director of the Los Angeles County Department of Public Health. "We are deeply grateful to our many partners who share our commitment to tackling the devastating damage of medical debt. Together, we are working to ensure that every resident has a fair and just opportunity to achieve and maintain good health."

Medical Debt Coalition partners include multiple sectors from healthcare providers, community-based organizations, and legal aid groups. The Coalition's mission is to alleviate the burden of medical debt, prevent its occurrence, and promote health equity. Medical debt impacts approximately 785,000 residents-one in ten adults in LA County-creating barriers to essential health care, exacerbating inequities, and forcing many families to make impossible choices between medical care and basic necessities like food and housing.

In 2022, medical debt in Los Angeles County exceeded $2.9 billion, an increase of $300 million from the previous year. This burden is similar in prevalence to chronic diseases like type 2 diabetes and disproportionately impacts families with children, low-income households, and communities of color, including Latinx, Black, American Indian, and Pacific Islander residents.

Medical debt not only undermines financial stability but also exacerbates physical and mental health challenges by delaying or preventing necessary medical care. Even insured residents are vulnerable, as high out-of-pocket costs can accumulate rapidly.

Residents that receive a medical bill they can't pay or did not expect can visit http://publichealth.lacounty.gov/hccp/medicalDebt/ for information and resources, including how to apply for free or discounted hospital services (charity care), legal advice & assistance, consumer counseling, and tips for dealing with billing and collections.