The Funding Will Support the L.A. County Medical Debt Relief Program
LOS ANGELES – Even with expanding insurance coverage, medical debt in Los Angeles County has risen to nearly $3 billion affecting one in 10 adults in the county. The burden of medical debt increases food and housing insecurity, and often leads to delays or ability to follow up in further medical care – all things that worsen health outcomes. Last month, the Board of Governors of L.A. Care Health Plan unanimously approved a $2 million commitment to support the L.A. County Medical Debt Relief Program, a new effort to prevent and reduce medical debt for county residents.
“L.A. Care is proud to be the first health plan to partner with the county on an effort to relieve current and future medical debt for L.A. County residents,” said John Baackes, L.A. Care CEO. “No one should have to decide whether to get medical care or put food on the table. No one should go bankrupt because they fell ill.”
The L.A. Care commitment follows a $5 million commitment by the L.A. County Board of Supervisors. The county contracted with Undue Medical Debt, a national nonprofit that says it can erase an average of $100 in debt for every dollar that is donated. The county is hoping to raise at least $24 million.
“We are deeply grateful to L.A. Care and our partners for their unwavering commitment to addressing the devastating harms of medical debt,” said Dr. Barbara Ferrer, Ph.D., M.P.H., M.Ed., Director of the Los Angeles County Department of Public Health. “Medical debt is not just a financial burden; it is a public health crisis that exacerbates inequities and prevents many residents from accessing the care they need. By working together, we are taking an important step toward ensuring that residents in Los Angeles County have a fair and just opportunity to achieve and maintain good health.”
In addition to relieving medical debt for qualified individuals, the health plan funding will be used by the program to work with hospitals to identify ways to help patients qualify for financial assistance programs that reduce or cancel medical debt.
“Medical debt disproportionately impacts low-income people of color and those with chronic illnesses,” said Baackes. “This effort is consistent with the L.A. Care mission of serving the county’s vulnerable and low-income communities.”
The financial support for the county effort aligns with L.A. Care’s commitment to advancing health equity, which means everyone has a fair and just opportunity to be as healthy as possible.