ORANGE COUNTY, Fla. — Through a partnership with third-party vendor Undue Medical Debt, Orange County has helped wipe out $43 million in medical debt of qualified county residents, the county announced Monday.
What You Need To Know
Orange County on Monday that the health care-related debt of about 42,000 qualified residents has been eliminated
It marked the third such move through a partnership with nonprofit Undue Medical Debt
Orange County commissioners approved spending unused funding from the American Rescue Plan Act of 2021 for the initiative
The debt is purchased at bulk for a fraction of its original total
The initiative, which the county is calling the largest medical-debt relief program in Florida’s history, has relieved a total of $559 million in medical debt affecting 345,000 county residents in three separate moves. Monday’s announcement covered 42,000 residents.
The Board of County Commissioners voted to allocate funding from the American Rescue Plan Act of 2021, and the county is working with Undue Medical Debt to help make the initiative possible. The county commission initially approved the initiative in August 2024. The partnership provides funds to Undue Medical Debt, a national, independent 501(c)(3) charitable organization that works with hospitals and other medical providers to help qualifying people with medical debt relief. The nonprofit acquires the debt in bulk at a fraction of its face value. According to the county, $1 can eliminate $100 of medical debt on average.
People who had medical debt eliminated had to live in Orange County and have an income below 400% of the federal poverty level or have medical debt that exceeded 5% of their annual income.
But residents cannot apply for the medical relief. Partnerships with hospitals, health care providers and debt collectors help identify possible recipients. If their debt is purchased by Undue Medical Debt, it is paid in full with no tax implications for the recipients. They are notified by mail that their debt has been eliminated.
“This historic initiative has transformed the lives of hundreds of thousands of Central Floridians,” said Orange County Mayor Jerry L. Demings. “Relieving medical debt gives families the freedom to focus on their health and build a brighter future.”