Kentucky wipes $153M in medical debt for 67,000 residents

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Kentucky has erased $153 million in medical debt for 67,000 residents, according to a news release from Gov. Andy Beshear. The debt relief is part of the Team Kentucky Medical Debt Relief Program, which the governor established through a Sept. 15 executive order to erase $250 million in medical debt for 130,000 eligible residents. 

The $153 million total reflects two debt-erasure actions, with the first in September accounting for more than $100 million for approximately 46,000 qualifying Kentuckians. As of Oct. 29, roughly 22,000 additional residents had $50 million in medical debt erased.

Mr. Beshear’s executive order also directed $2.5 million in funding to Undue Medical Debt, a national nonprofit that has erased more than $49 billion in debt nationwide. The nonprofit acquires medical debt from participating collection agencies and hospitals, relieving debt at a fraction of the cost. For Kentucky, this looks like $100 erased for every $1 spent.

“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,” Mr. Beshear said in the news release. “From cancer treatment to giving birth, the stories showcase that medical debt is not a choice, yet it can burden a family for years and keep them from milestones such as homeownership. I am proud of the progress we’re making to provide relief to 130,000 of our people.”

There is no application or request process for the Team Kentucky Medical Debt Relief Program. Eligible residents will receive a letter from Team Kentucky and the Undue Medical Debt organization informing them of their debt relief. To qualify, a Kentucky resident must owe at least 5% of their annual income for outstanding medical bills or earn at or below 400% of the federal poverty level, approximately $100,000 for a family of three.

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