More than 134,000 residents to receive notices of medical debt relief from LA County, nonprofit

LOS ANGELES (KABC) -- More than 134,000 Los Angeles County residents will soon get an envelope in the mail with the words "medical debt" on it. But, the envelope carries good news of much needed relief.

Los Angeles County Supervisors posed a question: What if instead of collection agencies, the county purchased medical debt?

"And what if, instead of collecting it, we forgave it, and that's exactly what we've done," said Los Angeles County Supervisor Janice Hahn, who co-authored the motion to create the L.A. County Medical Debt Relief Program.

More than $183 million of debt was relieved in the first round of program.

"You don't have to take any action," explained L.A. County Supervisor Holly Mitchell, who also co-authored the motion. "It is a real notification that we are taking care of your medical debt."

According to a recent analysis by the L.A. County Department of Public Health, medical debt now impacts 1 in 9 adults in the county.

Eyewitness News spoke with one woman preferred not to be identified. But her jaw dropped when she learned this program exists. Even with health insurance, as a recent college graduate, she had to pay off a $7,000 debt following a week-long hospitalization.

"Some of them actually went to collections," she explained. "I ended up paying them all off, but it was very stressful and financially straining," she added.

The financial burden was a factor in her decision to leave California. "I' m very glad they're doing this, because I think it stops a lot of people from receiving care," she said.

The county program is a partnership with the nonprofit Undue Medical Debt. Eligibility is based on income, family size, and whether a provider or debt collector participates in the program.

The county explains that although there are similar programs across the country, one unique component of their approach is prevention through partnerships with hospitals and community-based organizations.

"Undertaking measures to reform their charity care and financial assistance practices so that fewer people end up with medical debt to begin with," said Dr. Naman Shah, director of medical affair at the Los Angeles County Public Health Department.

Although there is no application process, they urge those who need help with bills or want to apply for other financial assistance to call (800) 896-3202 or visit http://publichealth.lacounty.gov/hccp/medicalDebt.