In an effort to assist low-income citizens in paying off past-due bills, Los Angeles County established its $2 billion Medical Debt Relief Program.
According to Dr. Barbara Ferrer, Director of the LA County Department of Public Health, “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.”
According to Public Health, medical debt among LA County residents topped $2.9 billion in 2022, an increase of almost $300 million from the previous year. According to the government, approximately 10% of adults in LA County, or 785,000 people, are struggling with outstanding medical expenses.
The program’s first payment aims to buy $500 million in debt for pennies on the dollar using $5 million from the Board of Supervisors. Among the first healthcare facilities to partner with the organization Undue Medical Debt to assist with patient bill payment are medical facilities such as Adventist Health White Hospital and MLK Community Hospital in Willowbrook.
Residents are exempt from applying. LA County and Undue Medical Debt will notify those whose debts have been canceled in writing that their obligations have been settled.
Residents must have past-due medical bills and earn less than 400% of the federal poverty limit, or around $60,000. The typical income in Los Angeles County is $68,750, according to the California Department of Housing and Community Development.
“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,” Supervisor Janice Hahn stated. “They are being completely crushed by it. The finest of county government is this chance to lessen that burden.
Residents can visit the Public Health website for information and resources, such as counseling, legal guidance and support, advice on how to handle billing and collections, and recommendations for free or reduced hospital services, if they are unable to pay a medical bill in the meantime.
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