67,000 Kentuckians have $153 million in medical debt erased

With its second round of letters, Kentucky’s medical debt relief program has erased $153 million in medical debt for 67,000 Kentuckians, according to a news release from the governor’s office. The most recent round eliminated nearly $50.6 million in medical debt for more than 22,000 Kentuckians, bringing the program closer to its goal of canceling $250 million in debt for about 130,000 residents.

“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 established the Team Kentucky Medical Debt Relief Program through an executive order in September, directing $2.5 million to Undue Medical Debt. The national nonprofit buys qualifying medical debt at a discount and then forgives it. According to the release, Kentucky’s breakdown amounts to $100 in medical debt erased for every $1 spent.

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

Recipients do not apply for debt forgiveness through the program. Instead, the nonprofit identifies eligible individuals 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,” according to the release.

Allison Sesso, president and CEO of Undue Medical Debt, voiced her appreciation for Kentucky’s partnership in the program.

“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.

Eligibility is limited to Kentucky residents who either owe at least 5% of their annual income in outstanding medical bills or earn at or below 400% of the federal poverty level—around $100,000 for a family of three.

According to the release, the first round of notifications has already been distributed, while the second round of letters is expected to be mailed around the week of Nov. 9.
More information about the debt-relief program is available at MedicalDebtRelief.ky.gov.