Los Angeles County supervisors voted unanimously Tuesday to buy up and forgive millions of dollars in medical debt as part of a comprehensive plan to tackle a $2.9 billion burden that weighs on almost 800,000 residents.
The measure, authored by supervisors Janice Hahn and Holly Mitchell, allows the county to enter into a pilot program with Undue Medical Debt, previously known as RIP Medical Debt, a national organization that relieves patients of what they owe by purchasing their medical debt for pennies on the dollar then retiring it.
“Medical debt is largely out of people’s control, but it is devastating families across L.A. County, especially for people living on the brink of poverty,” Hahn said before the vote. “Luckily for us, this is low-hanging fruit. I think we have a moral obligation to seize this opportunity.”
The debt purchase measure is part of a larger county initiative that includes efforts to prevent the debt from accumulating in the first place, such as boosting hospital financial assistance programs and tracking hospital debt collection practices.
The Hospital Association of Southern California raised objections to the county’s overall plan in a letter to the Board of Supervisors, saying it unfairly singled out hospitals and citing a study that said one-time debt relief programs did not improve patient mental well-being. The hospital association declined to speak with KFF Health News further about the debt forgiveness pilot program.
Hahn’s office estimates the county’s $5 million public health investment will help 150,000 residents and eliminate $500 million in debt. The public health department said it hopes to launch the pilot in the coming months and provide Angelenos relief this year. According to Mitchell’s staff,…
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