Orange County approves $4.5M to eliminate medical debt for thousands
ORLANDO, Fla. - Orange County commissioners have approved a $4.5 million program to eliminate medical debt for approximately 150,000 residents.
The initiative, funded by the American Rescue Plan, aims to provide financial relief to individuals burdened by medical expenses.
Under the program, the nonprofit organization Undue Medical Debt will use the funds to purchase and forgive outstanding medical debts. The relief will be provided automatically, and qualifying residents will be notified once their debt has been cleared.
"This is something that will help people immediately," said Sam Delgado of Central Florida Jobs with Justice, emphasizing the program's potential impact on those struggling with overwhelming medical bills.
Eligibility for debt relief includes residents whose medical debts exceed 5% of their annual income and whose income does not surpass four times the federal poverty level. For a family of four, this threshold is $124,800. Currently, the program is limited to patients who have received care at Central Florida’s two largest healthcare providers, Orlando Health and AdventHealth.
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"If we see that there are additional funds after we go through those two hospitals, then we will approach other potential sources," said Allison Sesso, President and CEO of Undue Medical Debt.
During the nearly two-hour discussion, some commissioners questioned whether the funds would be better spent addressing the county’s rising homelessness crisis. Ultimately, only Mayor Jerry Demings and Commissioner Christine Moore voted against the debt relief plan.
"I’d be for putting the money toward the homeless problem because we’ve got the state dealing with us right now with that law," Moore said, expressing her concern.
Commissioner Mayra Uribe countered, stating, "$4.5 million is not going to make or break homelessness, but $4.5 million times two or three can actually help residents right now who are having medical debt issues and who could eventually become homeless."
Undue Medical Debt estimates it will take at least six months before letters are sent out to those whose debt has been forgiven. The nonprofit anticipates that the most common reactions will be disbelief, followed by tears of joy.