By Tom Latek
Kentucky Today
Gov. Andy Beshear announced that $153 million in medical debt has now been erased for 67,000 Kentuckians, as his administration makes progress toward the goal of $250 million in relief through the Medical Debt Relief Program.
Established by the Governor through an executive order in September, the program is expected to relieve medical debt for 130,000 eligible individuals across the state.
“Providing relief from medical debt can be life-changing for hardworking Kentuckians, and we’ve seen that firsthand through positive messages from those who have benefited from this program,” Beshear said. “From cancer treatment to giving birth, the stories showcase that medical debt is not a choice, yet it can burden a family for years and keep them from milestones such as homeownership. I am proud of the progress we’re making to provide relief to 130,000 of our people.”
After the Governor’s initial announcement of the program in September, the first 46,000 qualifying Kentuckians had more than $100 million in medical debt erased. As of Thursday, an additional $50 million dollars has been cancelled for another 22,000 Kentuckians.
Through the executive order, Beshear directed $2.5 million to Undue Medical Debt, a national nonprofit that has erased more than $49 billion in debt nationwide. The nonprofit acquires medical debt from participating hospitals and collection agencies, relieving debt for a fraction of the cost. For Kentucky, the breakdown equals $100 erased for every $1 spent.
There is no application process for the Team Kentucky Medical Debt Relief Program, and debt relief cannot be requested. Eligible Kentuckians will receive an official medical debt relief letter which will notify recipients of what debts have been erased and from which creditors.
No further action is required of Kentuckians who receive a letter; however, it is recommended that the letter is kept for proof of debt erasure.
Official debt relief numbers for the first round of eligible Kentuckians have already been distributed. The second round of letters are expected to be mailed around the week of Nov. 9.
To qualify for the program, one must be a resident of Kentucky who owes at least five percent of their annual income for outstanding medical bills or earns below 400% of the federal poverty level, which is around $100,000 for a family of three.