Beshear announces $250 million in medical debt relief for over 130K Kentuckians
FRANKFORT, Ky. – Gov. Andy Beshear is announcing a potentially life-changing opportunity for some Kentuckians impacted by medical debt.
On Tuesday, Beshear signed an executive order establishing the Team Kentucky Medical Debt Relief Program, officials say. According to the governor’s office, this will provide relief to more than 130,000 Kentuckians from $250 million in medical debt.
“Medical debt isn’t a choice – it’s what people are faced with after a serious accident, cancer diagnosis and more. Relieving this debt is the right thing to do to help Kentuckians who are overwhelmed by these extreme costs, which can cripple families for years, if not a lifetime,” said Beshear. “That’s especially true when medical debt results in bad credit, which can prevent families from securing the American Dream of owning a home. Unpredictable challenges shouldn’t be a barrier for a better future, and today we’re taking steps to help make sure that isn’t the case.”
Through the executive order, Beshear says $2.5 million will be directed to Undue Medical Debt, a national nonprofit that 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, officials say.
“We’re proud to partner with Gov. Beshear and Team Kentucky to lift the financial and emotional burden of medical debt for families across the commonwealth,” said Undue Medical Debt Vice President of Government Initiatives Courtney Werpy Story. “No one chooses to get sick, get injured or face financial hardship simply because they needed healthcare. Thanks to this partnership, more than $103 million in medical debt has already been erased for over 46,000 Kentuckians, with letters arriving in mailboxes starting next week – one less bill to carry and one less source of stress. We hope this relief encourages Kentuckians to re-engage with the healthcare system, and we’re grateful for Gov. Beshear’s leadership as we continue this work.”
According to the governor’s office, there is no application process for the program, and debt relief cannot be requested.
Eligible Kentuckians will receive an official medical debt relief letter from Team kentucky and Undue Medical Debt, according to the governor’s office. Within that letter, officials say recipients will be notified what debts have been erased and from what 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.
Starting next week, Beshear says the first 46,0000 qualifying Kentuckians will have up to $100 million in medical debt erased. Official debt relief letters will go out in the mail starting next week to notify those included about either some or all of their medical debt being relieved.
To qualify, Beshear’s office says 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.
