Lexington becomes first Kentucky city to erase residents’ medical debt

Lexington has made history as the first city in Kentucky to abolish medical debt for some of its residents, with Vice Mayor Dan Wu announcing that more than $12.6 million in medical debt has been erased for 6,484 Fayette County residents.

The groundbreaking initiative, three years in the making, began when Wu proposed allocating $1 million to tackle the growing medical debt crisis. The Urban County Council unanimously approved the plan in October 2024, partnering with Undue Medical Debt, a national nonprofit that purchases large bundles of unpaid medical bills at steep discounts and eliminates them completely.

“Today, I am thrilled to announce the first round of medical debt relief here in Lexington, Fayette County,” Wu said. “In partnership with Undue Medical Debt, we have purchased and abolished $12,641,416 of medical debt providing much needed relief to 6,484 of our residents.”…

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