{"id":241959,"date":"2026-04-22T15:46:14","date_gmt":"2026-04-22T15:46:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-fl\/241959\/"},"modified":"2026-04-22T15:46:14","modified_gmt":"2026-04-22T15:46:14","slug":"orange-county-has-erased-559m-in-medical-debt-for-county-residents","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-fl\/241959\/","title":{"rendered":"Orange County has erased $559M in medical debt for county residents"},"content":{"rendered":"

\"\"Credit: Photo via Pixabay<\/a><\/p>\n

The Orange County government has eliminated $559 million in medical debt held by an estimated 345,000 county residents through an initiative the county first launched in 2024.<\/p>\n

The medical debt cancellation program, funded by about $4 million of federal American Rescue Plan Act<\/a> funds, was approved by the board of county commissioners in August 2024 and made possible through a partnership with Undue Medical Debt<\/a>.\u00a0<\/p>\n

Undue Medical Debt, formerly known as RIP Medical Debt, is a nonprofit founded by former debt collection executives that works with governments, student groups, churches and other advocacy groups to cancel medical debt by acquiring it in bulk at a fraction of its face value. On average, one dollar invested by the nonprofit can erase $100 in medical debt, according to the organization.<\/p>\n

\u201cThis historic initiative has transformed the lives of hundreds of thousands of Central Floridians,\u201d Orange County Mayor Jerry Demings shared in a statement Monday. \u201cRelieving medical debt gives families the freedom to focus on their health and build a brighter future.\u201d\u00a0<\/p>\n

Orange County was the first \u2014 and is still the only \u2014 local government in Florida to cancel medical debt through a partnership with Undue Medical Debt, although the nonprofit has worked with more than two dozen<\/a> other state and local governments elsewhere. Orange County leaders agreed to invest in the initiative in response to the advocacy<\/a> of Central Florida Jobs With Justice<\/a>, a coalition of social and labor rights groups.\u00a0<\/p>\n

Advocates pointed out that, amidst widespread cost-of-living concerns in the Orlando metro, medical debt is the leading cause of bankruptcy<\/a> in the U.S., affecting roughly four in 10 adults<\/a>.<\/p>\n

\u201cThroughout my 11 years as a social worker in this county, I\u2019ve seen that medical debt has created incredible barriers for people to gain stability,\u201d Adam Hartnett, a licensed social worker, told Orange County commissioners at the time. \u201cI\u2019ve worked with families who have hundreds of thousands of dollars in medical debt, who simply can\u2019t move economically because of this burden.\u201d\u00a0<\/p>\n

The medical debt cancellation program was funded by just a small sliver \u2014\u00a01.6 percent \u2014 of the roughly $270 million the county received under the American Rescue Plan Act of 2021, a federal Covid-19 pandemic relief package distributed to state and local governments under the Biden administration.<\/p>\n

Orange County was required to allocate this funding by the end of 2024 and must spend it by the end of 2026. The rest of the funds received by the county were dedicated to \u201cbusiness assistance,\u201d health and public safety, infrastructure projects, social and community services, and revenue recovery, according to county documents<\/a>.<\/p>\n

Orange County announced<\/a> its first wave of $472.5 million in medical debt relief, stemming directly from this initiative, last May. Another $42.9 million in relief was announced<\/a> in October, and Monday\u2019s announcement added an additional $43 million in debt relief on top of that, impacting an additional 42,000 residents alone.<\/p>\n

\u201cAt a time when families across Florida, and the country, face growing uncertainty about access to care, Mayor Demings and the Orange County Board of County Commissioners are demonstrating bold, community-minded leadership,\u201d Allison Sesso, president and CEO of Undue Medical Debt, said in a statement. \u201cWe\u2019re proud to continue this partnership and hope this relief encourages recipients to re-engage with the healthcare system without fear of the cost.\u201d\u00a0<\/p>\n

The program, notably, was not administered through any sort of application process. That is, residents who have seen their debt relieved did not have to apply for it.\u00a0<\/p>\n

Under the program, Undue Medical Debt identifies debt eligible for relief in partnership with local healthcare providers such as Orlando Health and debt collectors.<\/p>\n

Debt was considered eligible for relief if it exceeded 5 percent of the individual\u2019s total household income or if the debt came from a household with income at or below 400 percent of the federal poverty line<\/a>. As of 2025, that was equal to about $62,600 for a one-person household, or $128,600 for a family of four.\u00a0<\/p>\n

Sheila Santiago, an Orange County resident with multiple sclerosis who saw her debt relieved by the program, said in a statement that \u201cthis gift from Orange County brings a sense of peace to me and my family.\u201d\u00a0<\/p>\n

\u201cKnowing that our elected officials care about us and our wellbeing means the world to me and my family as we plan for our future,\u201d she added.<\/p>\n

According to the county news release, all medical debt acquired by Undue Medical Debt under the program \u201cis fully paid with no tax consequences for the recipient.\u201d Impacted individuals and families should have received a letter in the mail notifying them of the cancellation of their medical debt.\u00a0<\/p>\n

Orange County\u2019s news release described this as \u201cthe largest medical debt-relief initiative in Florida\u2019s history.\u201d And a county spokesperson confirmed that their contract with Undue Medical Debt \u201cremains ongoing.\u201d<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\"Orange\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\n\t\t\t\t\tThe debt relief initiative, made possible through funds from the Biden administration, has relieved medical debt for 302,000 people.\t\t\t\t<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\"Orange\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\n\t\t\t\t\tThe debt relief initiative was made possible thanks to federal funds provided under the Biden administration\u2019s American Rescue Plan Act.\t\t\t\t<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\"Orange\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n

\n\t\t\t\t\tThe medical debt relief plan will be funded by $4.5 million in unspent federal pandemic relief funds.\t\t\t\t<\/p>\n

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