$153 million in medical debt wiped out for 67,000 Kentuckians

Kentucky's medical debt relief initiative has cleared $153 million in medical bills for 67,000 residents, according to a release from the governor's office.

The most recent round eliminated nearly $50.6 million in debt for more than 22,000 Kentuckians, bringing the program closer to its target of erasing $250 million for roughly 130,000 people.

“Providing relief from medical debt can be life-changing for hardworking Kentuckians, and we’ve seen that firsthand through positive messages from those who have benefited from this program,” Gov. Andy Beshear said in the release.

Beshear launched the Team Kentucky Medical Debt Relief Program through an executive order and directed $2.5 million to Undue Medical Debt, a national nonprofit that buys qualifying medical debt at a discount and then forgives it.

According to the release, the effort in Kentucky is delivering about $100 in debt forgiveness for every $1 spent.

After the program was first announced, more than $100 million in debt was erased for the first 46,000 qualifying Kentuckians.

People who qualify do not need to apply. Instead, the nonprofit identifies eligible recipients and sends them a letter.

“There is no application process for the Team Kentucky Medical Debt Relief Program, and debt relief cannot be requested. Eligible Kentuckians will receive an official medical debt relief letter from Team Kentucky and Undue Medical Debt. The letter will notify recipients of what debts have been erased and from which creditors. No further action is required of Kentuckians who receive a letter; however, it is recommended that the letter be kept for proof of debt erasure,” the release said.

Allison Sesso, president and CEO of Undue Medical Debt, thanked Kentucky for partnering on the initiative.

“No one chooses to get sick, be in an accident or have a chronic condition, and no one should lose their financial stability or their shot at owning a home due to these debts of necessity,” Sesso said in the release.

A Kentucky resident qualifies if medical bills amount to at least 5% of annual income or if household income is at or below 400% of the federal poverty level, which is about $100,000 for a family of three.

The first round of notices has already been sent, and the next batch of letters is expected to go out soon, according to the release.

More information about the relief program is available at MedicalDebtRelief.ky.gov.