Orange County endorses plan to erase over $400 million in medical debt
Orange County, Florida, commissioners have approved a plan to use $4.5 million from the American Rescue Plan Act to clear medical debt for over 150,000 residents. The funds, allocated to address the financial impacts of the COVID-19 pandemic, will be managed in partnership with the nonprofit Undue Medical Debt. This organization will identify eligible individuals and families, whose medical debt constitutes at least 5% of their household income or who earn up to 400% of the federal poverty line, and forgive their outstanding medical bills.
The decision, passed with a 5-2 vote, aims to alleviate a significant financial burden on residents, many of whom delayed seeking medical care due to the costs. Major local healthcare providers, Orlando Health and AdventHealth, have agreed to participate in the initiative. However, there are concerns that the plan might primarily benefit those with recent hospital bills rather than individuals whose debts have already been sold to collection agencies. Nonetheless, the program does not require individuals to apply; eligible participants will be automatically identified and notified that their medical debts have been cleared.
