Local
Kentucky’s $2.5 million program begins canceling medical debts for residents
Notices are arriving for Kentuckians whose medical debts were canceled through a state program expected to erase about $250 million. The program uses $2.5 million in state funding and is projected to reach roughly 130,000 people.
FRANKFORT, Ky. — Kentuckians are beginning to receive notices that medical debts have been erased under a state relief program Gov. Andy Beshear launched by executive order in August.
The state committed $2.5 million to the Team Kentucky Medical Debt Relief program, which is expected to cancel about $250 million in debt and benefit approximately 130,000 residents. Some recipients have reported having more than $1,000 cleared. One woman shared a notice showing more than $5,800 in canceled debt, including bills connected to the birth of her now-5-year-old son.
The program does not accept applications, and residents cannot request that their debt be included. People who qualify will be notified by mail. Eligibility includes owing medical bills equal to at least 5% of annual income or having household income at or below 400% of the federal poverty level.
The state’s funding goes to Undue Medical Debt, a nonprofit that purchases medical debt from hospitals and collection agencies at a discount. Under the program’s estimate, each dollar spent can eliminate $100 in medical debt.
Residents can find program information at medicaldebtrelief.ky.gov.