The Orange County government has eliminated $559 million in medical debt held by an estimated 345,000 county residents through an initiative the county first launched in 2024.
The medical debt cancellation program, funded by about $4 million of federal American Rescue Plan Act funds, was approved by the board of county commissioners in August 2024 and made possible through a partnership with Undue Medical Debt.
Undue Medical Debt, formerly known as RIP Medical Debt, is a nonprofit founded by former debt collection executives that works with governments, student groups, churches and other advocacy groups to cancel medical debt by acquiring it in bulk at a fraction of its face value. On average, one dollar invested by the nonprofit can erase $100 in medical debt, according to the organization…