Overview
- Gov. Andy Beshear signed an executive order on Tuesday establishing the Team Kentucky Medical Debt Relief Program to target roughly $250 million in debt for more than 130,000 residents.
- The order sends $2.5 million to Undue Medical Debt, which buys delinquent medical bills at steep discounts so about $100 of debt can be erased for every $1 the state spends.
- State officials say the program requires no application and will automatically mail letters to eligible people starting next week after an initial rollout that will clear up to $100 million for about 46,000 Kentuckians.
- To qualify, a person must live in Kentucky and owe medical bills equal to at least 5% of their annual income or have household income at or below 400% of the federal poverty level, roughly $100,000 for a family of three.
- Officials and Undue say erased debts can lift credit barriers and ease access to loans, housing and care, and the administration plans to expand relief beyond the first round to reach the program’s broader goal.