Los Angeles County has announced a program to cancel $2 billion in medical debt for residents.
The initiative, led by the LA County Board of Supervisors and the Department of Public Health, aims to “alleviate” the financial burden of medical debt for thousands of individuals. The program is a collaboration with Undue Medical Debt, a nonprofit formerly known as RIP Medical Debt, which has already helped over 9 million people across the U.S.
With $5 million in funding from the county, and additional contributions from LA Care Health Plan and the Los Angeles County Medical Association, the program is expected to purchase and eliminate up to $500 million in medical debt.
Starting in early 2025, residents whose debts have been relieved will receive notification letters.
Medical debt affects one in ten adults in Los Angeles County, often forcing people to struggle with basic needs or delay necessary medical care. Even insured individuals can face overwhelming costs, leading to financial distress.
In 2022, residents collectively accrued more than $2.9 billion in medical debt, disproportionately impacting families with children, low-income individuals, communities of color, and those with chronic health conditions.
The program’s goal is to alleviate $2 billion in debt, helping approximately 785,000 residents. County leaders hope to expand the effort through partnerships with philanthropic organizations, hospitals, and health plans, while advocating for systemic reforms to address the root causes of medical debt.
Last week, the Los Angeles City Council voted to pass a $30 minimum wage for hotel and airport employees.
According to The Center Square, the Los Angeles Chamber of Commerce opposed the measure, writing, “Payroll for hourly employees alone will increase by more than 70% from current costs by the time the $30/hour wage is achieved in 2028. [Transient Occupancy Tax] revenue is the city’s largest unrestricted General Fund revenue source. This revenue is already in decline.”
“The proposed ordinance will only further reduce revenue at a time when the city is facing a half-billion-dollar deficit,” the Chamber of Commerce added.
The meeting lasted more than five hours, the Los Angeles Times reported.
Councilmember Ysabel Jurado said, “When we support low-wage workers, they can contribute to our economy and bolster the city.”
