Kentucky Will Erase $250 Million in Medical Debt, No Application Required
The first letters go to 46,000 residents whose combined debts top $100 million.
More than 130,000 Kentuckians will eventually have their medical debt wiped out under a plan announced by Gov. Andy Beshear, Louisville Public Media reports.
How a little goes a long way
The state is putting up $2.5 million. Its partner, the nonprofit Undue Medical Debt, buys bundles of medical debt for a fraction of face value and then forgives it. That math is how $2.5 million is expected to erase about $250 million.
Who qualifies
- Residents who owe medical bills of at least 5% of their annual income, or
- Residents earning at or below 400% of the federal poverty level
Nobody has to apply. Eligible residents simply receive a letter saying some or all of their medical debt is gone. The first round covers about 46,000 people and more than $100 million in debt.
"There is no application, there is no paperwork, there are no hoops to jump through." — Courtney Werpy Story, Undue Medical Debt
Why it matters
Beshear said medical debt drags down credit scores and makes it harder for families to find housing. About four in 10 U.S. adults reported medical or dental debt in 2022, according to KFF.
Undue Medical Debt has run similar programs with Arizona, Illinois and North Carolina, and with the city of Lexington, where more than $18 million had been waived for almost 10,000 residents as of February.