From the Orange County Newsroom
In Summary:
Orange County has cleared $49.2 million in medical debt for over 49,000 residents through its partnership with the national nonprofit Undue Medical Debt. This second round of relief builds on the County’s ongoing program, which has eliminated more than $515 million in debt for 302,000 residents to date. Eligible debt is identified through hospitals and debt collectors and purchased in bulk by the nonprofit, allowing one dollar to erase roughly $100 of medical debt. Residents meeting income or debt criteria are notified by mail, requiring no action on their part. The initiative highlights how local government partnerships can provide meaningful financial and emotional support to families struggling with medical expenses.
Orange County has eliminated another $49.2 million in medical debt, affecting over 49,000 residents. Through its partnership with national nonprofit Undue Medical Debt, Orange County’s second round of debt relief includes accounts acquired from local hospital systems and third-party debt collection agencies.
In August 2024, the Orange County Board of County Commissioners approved a contract with Undue Medical Debt, which allows the nonprofit to analyze and purchase qualifying medical debt at a fraction of its face value. To date, the County has eliminated over $515 million of medical debt for more than 302,000 residents. Approximately $3.94 million has been used from the program’s budget.
“Medical debt is more than a financial burden; it is an emotional weight,” said Sheila Santiago, an Orange County resident who received $7,000 in relief in May. “Having that weight taken off my shoulders allows me to focus my time and attention on my health.”
Orange County’s program does not accept applications. Instead, eligible debt is identified through partnerships with hospitals, healthcare providers, and debt collectors, then purchased directly by Undue Medical Debt. Since the nonprofit acquires the most burdensome medical debts in bulk for a fraction of their face value, one dollar can erase $100 of medical debt on average.
Qualifying Orange County residents must meet one of two criteria:
- Resides in a household with income at or below 400% of the Federal Poverty Guidelines
- Has medical debt that equals or exceeds 5% of their total household income
Once acquired, the debt is fully paid and requires no action from the affected residents. Recipients are notified by mail with an official letter from Undue Medical Debt confirming the relief. Those letters will start arriving in the coming weeks. Additional rounds of debt relief will be announced in the future.
“We’re thrilled to continue our partnership with Orange County, bringing much-needed financial and emotional relief to more residents,” says Allison Sesso, president and CEO of Undue Medical Debt. “This initiative exemplifies how local government can make a transformative impact on families who are least able to pay these burdensome debts.”
Recent polling from the nonprofit finds that the overwhelming majority of voters, 77%, want their state elected officials to take action on medical debt.
Visit ocfl.net/medicaldebt to learn more about the County's partnership with Undue Medical Debt and view a list of frequently asked questions.
