File photo
Key Points
- Orange County erased $199 million in medical debt for over 112,000 residents in the latest round of its Medical Debt Relief Initiative.
- The initiative has canceled a total of $758.2 million in medical debt affecting about 515,000 residents since it began.
- The county's partnership with nonprofit Undue Medical Debt uses federal American Rescue Plan funds to buy and cancel debt at steep discounts without requiring resident applications.
Orange County has erased another $199 million in medical debt for more than 112,000 residents, county officials announced Tuesday.
The latest round is the fourth under the county’s Medical Debt Relief Initiative. The program has eliminated $758.2 million in debt affecting approximately 515,000 residents, according to a county news release.
County commissioners approved the partnership with national nonprofit Undue Medical Debt in August 2024. Federal American Rescue Plan Act funding supports the effort.
The nonprofit buys outstanding medical debt at steep discounts from hospitals, other health care providers and collection agencies, then cancels it. The county said those purchases often cost a penny or less per dollar owed.
Residents cannot apply for assistance. Instead, the nonprofit identifies qualifying debt through participating providers and collectors.
To qualify, residents must have household income at or below 400% of federal poverty guidelines or medical debt totaling at least 5% of household income.
Residents receiving relief in this round should receive confirmation letters in envelopes bearing Undue Medical Debt’s name in the coming days, the county said. The canceled debt carries no tax consequences for recipients.
The county’s Medical Debt Relief Initiative webpage provides additional program information and answers to frequently asked questions.