Introduction to Medical Debt Relief
In the coming days, more than 134,000 people will get a letter that many people could only dream of: Their debt is being erased. In this case, Los Angeles County will be confirming in a letter that medical debt for some LA County residents is wiped out with no strings attached.
The Proposal and Its Authors
LA County Supervisors Janice Hahn and Holly Mitchell, who authored the proposal for the medical debt relief initiative, urged people to believe it. “How many of you are old enough to remember the old Publishers Clearing House commercial? You’d rush to your mailbox hoping to find an envelope and maybe you’d win a million dollars,” Hanh jokingly started her remarks during a news conference Thursday. “This envelope is going to be even better.
How the Program Works
After the Board of Supervisors approved the medical debt relief initiative last year, the county will purchase medical debt from low-income residents with financial strains, primarily using contributions from charities and medical organizations. Hahn said she and Mitchell decided to reverse-utilize the strategies by debt collectors, who buy medical debts for pennies on the dollars. “We asked ourselves, ‘What if instead of collection agencies buying the debt, Los Angeles County bought that debt,’” Hahn described the brainstorming process for the program. "And what if instead of collecting it, we forgave it? That’s exactly what we’ve done.”
Notification of Debt Erasure
Those residents whose medical debt is being erased will receive a letter with an LA County-branded envelope that reads Unique Medical Debt, said Mitchell. “I don’t want people to confuse the word ‘undue’ with ‘overdue,’” Mitchell said. “I’m going to encourage people to open their mail. Far too many people get their mail and toss it aside.”
Eligibility and Qualifications
The medical debt program is an automatic pilot, which does not require qualifying residents to take any action, and no applications are accepted. The qualified people must be residents of LA County, earning less than $128,000 for a family of four or having a medical bill that is 5% or more of their annual household income. Those who meet the qualifications must also have a past due bill from a hospital or clinic participating in the debt relief program. They should not be using a payment plan to pay the bill.
Program Details and Goals
The total amount of debt eliminated in the first round is estimated to be more than $183 million dollars, nearly one third of $500 million the county is aiming to erase. After the program started with an initial $5 million investment by the county, officials are hoping to raise up to $2 billion through charitable contributions. One in nine LA County residents is burdened by crippling medical debt, with over half of them having paid the medical bill with their credit cards, the county said. Among those with medical debt, 45% report were unable to afford basic necessities, and 72% skipped needed medical care, the county’s data noted.
Conclusion
The medical debt relief program initiated by LA County is a significant step towards alleviating the burden of medical debt from its residents. With the potential to erase up to $500 million in debt, this program can bring relief to thousands of individuals and families. As the program continues to grow and expand, it is essential for eligible residents to be aware of the program and its benefits.
FAQs
- Q: Who is eligible for the medical debt relief program?
- A: Residents of LA County earning less than $128,000 for a family of four or having a medical bill that is 5% or more of their annual household income are eligible.
- Q: Do I need to apply for the program?
- A: No, the program is an automatic pilot and does not require any action from qualifying residents.
- Q: How much debt is being erased in the first round?
- A: The total amount of debt eliminated in the first round is estimated to be more than $183 million dollars.
- Q: How can I find more information about the program?
- A: More details on the medical debt relief program can be found on the official LA County website.
