2nd round of medical debt relief complete, $153 million erased for 67,000 Kentuckians
FRANKFORT, Ky. – A second wave of debt relief has erased $153 million in medical debt for thousands of Kentuckians, the governor announced Thursday.
Gov. Andy Beshear says his administration is working toward the goal of $250 million in total relief through the Team Kentucky Medical Debt Relief Program.
According to the governor’s office, Beshear established the program through an executive order in September, with the objective of relieving medical debt for 130,000 eligible Kentuckians.
“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,” said Beshear. “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.”
The second round of debt relief follows the first round, when 46,000 Kentuckians had over $100 million in medical debt relieved, officials say.
As of Thursday, the governor’s office says an additional $50 million has been cancelled for another 22,000 Kentuckians.
Through the executive order, Beshear states he has directed $2.5 million to Undue Medical Debt, a national nonprofit that has erased more than $49 billion in debt nationwide. The nonprofit acquires medical debt from participating hospitals and collection agencies, relieving debt for a fraction of the cost. For Kentucky, the breakdown equals $100 erased for every $1 spent.
“At a time when an estimated 100 million people in this country are burdened by medical debt, Kentucky is exemplifying how state leadership can show up for its constituents. I’m grateful to Gov. Beshear and Team Kentucky for their partnership,” said Undue Medical Debt president and CEO Allison Sesso. “Through this second round, more than 22,000 Kentuckians will soon learn that nearly $50.6 million in medical debt is gone. 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. I hope this relief brings financial and emotional peace of mind and encourages people to re-engage with the healthcare system without fear of the cost.”
There is no application process for the Team Kentucky Medical Debt Relief Program, and debt relief cannot be requested, officials say.
According to the governor’s office, 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 is kept for proof of debt erasure, officials say.
Official debt relief numbers for the first round of eligible Kentuckians have already been distributed. The second round of letters are expected to be mailed around the week of Nov. 9.
To qualify for the program, one must be a resident of Kentucky who owes at least 5% of their annual income for outstanding medical bills or earns at or below 400% of the federal poverty level, which is around $100,000 for a family of three, officials say.
