LA County to Clear Medical Debt for 150,000 Residents
Due to a new pilot program, an estimated 150,000 residents across LA County will soon have their medical debt cleared, and thousands more will be notified in the coming month of similar news, officials announced Monday.
Medical Debt Relief Program Launched
The Los Angeles County Department of Public Health launched its Medical Debt Relief Program, an initiative aimed to eliminate such debt that disproportionately affects vulnerable communities.
Program Details
County officials said the program will initially eliminate $500 million in debt by using a $5 million investment to purchase medical debt for pennies on the dollar for low-income residents. The County Board of Supervisors approved the program earlier this year, which was spearheaded by Supervisors Janice Hahn and Holly Mitchell.
Impact of Medical Debt
“No one should have to go into poverty to get the health care they need, and yet that’s exactly what’s happening,” Hahn said. “Medical debt is crushing families across our communities.”
She added that one in 10 adults, or approximately 785,000 residents, in the county are burdened with medical debt — exacerbating inequities and forcing families to make hard decisions between paying for medical care or food and housing.
Program Expansion
Designed by the Medical Debt Coalition, a multi-sector group, the program seeks to eliminate $2 billion in medical debt for LA County residents.
In support of this goal, LA Care Health Plan has contributed an additional $2 million, and the LA County Medical Association has provided another $1 million for the program, for a total of $8 million.
Participating Hospitals
Initial participating hospitals include Martin Luther King Community Hospital and Adventist Health White Memorial Hospital, which will work with the national nonprofit organization, Undue Medical Debt, to retire qualifying medical debt and close accounts.
Eligibility and Notification
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), according to the DPH. 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.
Conclusion
The Medical Debt Relief Program is a significant step towards addressing the devastating impact of medical debt on low-income families and vulnerable communities. By clearing medical debt for 150,000 residents and providing resources for those who still struggle with debt, LA County is working towards ensuring that every resident has a fair and just opportunity to achieve and maintain good health.
FAQs
Q: Who is eligible for the Medical Debt Relief Program?
A: Residents who earn up to 400% of the federal poverty level (FPL) and have past due medical bills are eligible for the program.
Q: Do I need to apply for the program?
A: No, residents do not need to apply for the program. Those who are eligible will receive a letter from Los Angeles County and Undue Medical Debt notifying them that their debt has been fully canceled.
Q: What happens to my medical debt after it is cleared?
A: Once your medical debt is cleared, it will be closed and you will no longer receive collection calls or letters.
Q: Where can I get more information about the Medical Debt Relief Program?
A: Residents 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.
