Have you received a letter in the mail in Los Angeles County using the bold blue word “Undde”? This is not a scam. Notify you that your medical debt has been cleared by the county.

More than 134,000 Los Angeles County residents began receiving notifications in mail Monday as part of the first wave of medical bill forgiveness that the county’s medical debt relief program became possible. The first round of notice is expected to reduce debts of more than $183 million.

The program was launched in December 2024 with nonprofit medical debt, with the mission of providing financial relief to eligible residents through the purchase and elimination of debt. Funding for the program was funded by an initial $5 million investment approved by the Los Angeles County Board of Supervisors and provided additional funding for LA Care Health Plan and La County Medical Assn.

The aim is to retire $500 million in medical debt for low-income residents and plans to eliminate up to $2 billion by seeking additional donations from charitable partners, hospitals and health programs. This could mean clearing the debts of millions of people.

Through the program, the county provides funding and improper medical debt, thereby obtaining approved debt for bulk debt from provider partners such as hospitals and health systems, as well as payment agencies, such as hospitals and health systems.

Holly Mitchell, Los Angeles County District 2 supervisor, said too many residents are “a medical bill from the fiscal disaster.”

"In 2023 alone, Los Angeles County residents held more than $2.9 billion in medical debt," Mitchell said.

A recent analysis of 2023 data found that one adult in the county was affected by medical debt, “many are low-income families and can never escape even a lifetime of work,” said Janice Hahn, the fourth district supervisor of Los Angeles County.

The data show that the possibility of adults with medical debt burdens is unsafe, the possibility of delaying or giving up necessary medical or prescriptions and experiencing housing instability is instability for people without such burdens. About half of adults facing medical debt bear credit card debt to pay for their medical expenses, the data says.

“This debt is often tied up and sold to debt collectors’ pennies for dollars, who ruthlessly pay positive payments after their families,” Hahn said.

There are no qualities attached to the relief plan, so you don't have to pay taxes on it.

The “inappropriate” notice in the email will list how much debt is forgiven and where debts are owed, such as the hospital, clinic or collector trying to collect from you.

As notices begin to land on the residence on Monday, please be aware of the letters for the next few weeks.

Who is eligible to reduce medical debts?

The eligibility of the program depends on income, family size, and whether the healthcare provider who owes money chooses to participate in the program.

To qualify for the program:

• Become a resident of Los Angeles County.
• Earn less or equal to 400% of the federal poverty level, or own 5% or more of your family’s income. For example, in 2025, the family of four will earn 400% of the federal poverty level, at $128,000.
• Have qualified debt, which means you must collect a bill from the hospital or clinic for a debt relief program that has been deferred and you do not use the payment plan for that bill.
  

Do I need to apply?

no. If you and your bill are eligible for the program, improper medical debt will repay your debt and notify you by email.

If the debt is held by the hospital, clinic or collector participating in the program, your bill is eligible for the program. The initial participating hospitals were Martin Luther King Jr. Community Hospital and Adventist Health Memorial Hospital. County supervisors call on other debt holders to participate.

No relief can be asked.

Have you lost your letter?

If you receive a letter from the county’s Improper Medical Debt Program, please contact the program online.

I need help with medical debt, but did I not receive a letter in the email?

If you need help with medical expenses, visit the county’s Department of Public Health’s online resource list for support. Potential resources include applying for free or discounted hospital services, legal advice and consumer consultation.

Beware of scammers

The program is not a scam: If the county releases your medical debt, you will receive a letter from an email from Los Angeles County and a notice of improper medical debt. There will be a county seal on the envelope.

Taking this letter as part of your record shows that the medical debt has been forgiven.

Beware of so-called debt relief scammers and contact you via text, phone or email. And do not fall to the caller, asking you for information or payment in exchange for medical debt relief.