ORLANDO, Fla. — Thousands of Orange County residents are getting letters telling them their medical debt has been wiped away and it’s not a scam!
It comes after Orange County Commissioners decided to use leftover COVID-19 funds on a medical debt relief program for qualifying residents.
Through a partnership with the non-profit Undue Medical Debt, more than $472.5 million in medical debt has been eliminated for over 310,000 Orange County residents.
The non-profit was given $4.5 million from Orange County’s American Rescue Plan Act funding to clear the debt and so far, about $3 million has been spent to buy debt in bulk and then erase it.
The debt relief includes accounts acquired from both local hospital systems and third-party debt collection agencies.
“We like to say that medical debt is not a debt of choice, it’s a debt necessity,” said Courtney Story, with Undue Medical Debt, “ You don’t choose to get sick, you don’t chose to get injured, you don’t choose the cost of care.”
Story is the Vice President of Government Initiatives at the non-profit, Undue Medical Debt.
She shared that approximately 25 cities and counties nationwide have collaborated with the non-profit on comparable debt relief initiatives.
Orange County is the first in the state to use COVID-19 cash to clear medical debt for residents.
Lifelong Orange County resident Pamela Bryant is one of thousands who qualified for the program and had their debt cleared.
She told Channel 9 it was hard to believe when a letter came explaining just over $1400 worth of hospital debt she’s owed since 2021 was now cleared.
“I thought it was a scam at first,” said Bryant, “It’s a blessing.”
Even though she worked full-time and had insurance, she stated that a hospital visit in 2021 still incurred an expense she couldn’t manage.
Bryant said every paycheck covers just enough to make ends meet.
“I am able to pay my bills, my rent, my life stuff. But if I had to do something else, like go to the emergency room and they’re asking you for $400 upfront, No, I’m not able to. Because something at my house would be behind,” said Bryant.
According to Orange County, the program does not accept applications. Instead, eligible debt is identified through partnerships with hospitals, healthcare providers and collectors, then purchased directly by Undue Medical Debt. Qualifying debt from an Orange County resident meets one of two criteria:
- Resides in a household with income at or below 400% of the Federal Poverty Guidelines
- Has medical debt that equals or exceeds 5% of their total household income
Once acquired, the debt is fully paid and requires no action from the affected residents. Recipients will be notified by mail with an official letter from Undue Medical Debt confirming the relief.
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