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About 134,000 LA County Residents Will Get Notices Their Medical Debt Is Eliminated

  • Starting May 19, 2025, over 134,000 residents of Los Angeles County will receive mail confirming that their medical debts have been fully cleared.
  • The initiative to alleviate medical debt was launched after two Los Angeles County Board members proposed the county purchase outstanding debts from collectors and then cancel them, effectively overturning traditional debt collection methods.
  • Starting with an initial $5 million investment, the program collaborates with a national nonprofit organization specializing in medical debt relief to acquire and eliminate around $183 million in qualifying debt owed by low- to moderate-income individuals.
  • Nearly one in nine LA County adults holds medical debt often exceeding 5% of their income, causing financial strain, skipped care, and use of credit cards with high interest, disproportionately affecting communities of color and families with children.
  • The program aims to reduce medical debt up to $500 million through continued rounds, while county officials work with hospitals to improve financial assistance and prevent debt burdens for residents.
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NBC LA broke the news in Los Angeles, United States on Thursday, May 15, 2025.
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