🌅 Los Angeles County’s Landmark Medical Debt Relief Program

SOURCE

Los Angeles County Department of Public Health

WHAT TO KNOW

• The Los Angeles County Department of Public Health has permanently erased $363 million in medical debt since December 2024, bringing relief to more than 171,000 low-income residents. The latest wave of relief—announced earlier this month—eliminated $180 million in debt for 39,000 people.

WHY IT MATTERS

• The relief is part of the LA County Medical Debt Relief Pilot Program, a landmark initiative to help relieve the financial burden of medical debt and advance health equity across the county. The county’s goal is to eliminate $500 million in medical debt for low-income residents, representing nearly a quarter of the $2.9 billion of medical debt held by people across the county. The program is administered in partnership with Undue Medical Debt, a national organization that has provided relief for tens of millions of people who owed billions to hospitals, health systems, and collection agencies. The organization purchases the debt for a fraction of the face value and provides relief for patients with no strings attached.

CONNECT THE DOTS

• Los Angeles County’s program builds upon recent state legislation, Assembly Bill 1312, which Gov. Gavin Newsom signed into law in October. The bill requires hospitals to presumptively screen patients for financial assistance eligibility starting in 2027, ensuring eligible patients receive help automatically, rather than dealing with complex paperwork or delayed billing.