Kentucky Erases $153M in Medical Debt for 67,000 Residents

Kentucky Gov. Andy Beshear announced the state has erased $153 million in medical debt for 67,000 residents through the Team Kentucky Medical Debt Relief Program, established by a Sept. 15 executive order targeting $250 million in relief for 130,000 eligible residents. The total reflects two rounds of debt erasure: over $100 million for about 46,000 residents in September and $50 million for roughly 22,000 more as of Oct. 29. The program, funded in part by $2.5 million directed to the nonprofit Undue Medical Debt, buys debt from collection agencies and hospitals at a steep discount, achieving $100 in relief for every $1 spent. Eligible residents, those owing at least 5% of annual income in medical bills or earning at or below 400% of the federal poverty level, are notified automatically with no application required.