ORLANDO, Fla. — Hundreds of thousands of Central Floridians are about to discover their medical debt has been wiped away.
Next month, Orange County will begin notifying families that their debt was part of a $4.5 million program to erase debt funded by the pandemic-era American Rescue Plan.
County staff says they have already spent $3 million of that funding, in partnership with the nonprofit Undue Medical Debt.
Recipients did not need to apply for the program. Instead, they were included if their household income was less than the approximately $129,000 threshold for a family of 4 based on the 400% federal poverty guideline, or their debt exceeded 5% of their annual household income.
“Eligible debt is identified through partnerships with hospitals, healthcare providers, and collectors, then purchased directly by Undue Medical Debt,” a commissioner’s memo reported. “Once acquired, the debt is fully forgiven, and residents are notified by mail. This effort marks a significant step toward financial stability and improved quality of life for many in our community.”
Since debt can be purchased for a fraction of its value, the total amount expected to be eliminated under the program is $472.5 million, affecting 310,000 residents.
The county plans to publish a more detailed press release about the forgiveness milestone next week.
For additional information about the County’s partnership with Undue Medical Debt and a list of frequently asked questions, visit ocfl.net/medicaldebt.
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