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If you have unpaid medical bills in Florida, it's possible that one day a letter will arrive in your mailbox announcing that the debt no longer exists, without you having done anything to make it happen.
The nonprofit organization Undue Medical Debt has eliminated over 725 million dollars in medical debt for more than 623,000 residents of Florida, as announced in recent days.
Florida ranks second in the nation for the number of residents with medical debt: approximately one in every 12 people in the state carries this burden, and the uninsured rate is the sixth highest in the country.
How does the program work?
The mechanism is simple for the beneficiary: there is nothing to be done.
Undue Medical Debt Buy unpaid hospital debt directly from hospitals and collection agencies for a fraction of its nominal value, and then fully settle those debts.
Camila Salvagno, the representative of the organization, explained it this way:
"Those affected will receive a letter by mail. With this good news, there is no need to submit any application or fill out any forms, and nothing needs to be returned in exchange."
Furthermore, the forgiveness does not generate tax obligations: the beneficiaries are not required to pay taxes on the eliminated debt.
Who can qualify?
Relief cannot be requested, but there are eligibility criteria.
To qualify, a person must meet at least one of these two conditions:
- Having an income equal to or below 400% of the federal poverty level, which is approximately $100,000 per year for a family of three.
- Having a medical debt that exceeds 5% of your annual income.
Selection occurs when the organization acquires a debt package.
The process is random, ensuring that there is no favoritism.
The most advantaged counties in Florida
The official statement from Undue Medical Debt outlines that Broward tops the list with over $90.2 million eliminated for nearly 61,000 people, followed by Polk (almost $61.6 million), Hillsborough (almost $60.9 million), and Miami-Dade (almost $32.9 million for nearly 17,200 people).
The Orange County also has its own program: in August 2024, its board of commissioners approved a $4.5 million contract with Undue Medical Debt, using federal funds from the American Rescue Plan Act, to benefit approximately 400,000 residents.
The program extends beyond Florida
The model operates in several states.
In Connecticut, the organization eliminated 6.5 million dollars in medical debt for 97,000 residents in a fourth round coordinated with the state.
In Arizona, 352,000 residents received similar cancellations.
Since its founding in 2014, Undue Medical Debt has eliminated over $14 billion in medical debt nationwide, assisting more than nine million people.
The organization estimates that for every dollar donated, it is able to eliminate an average of 100 dollars of debt, a ratio that turns each contribution into a concrete relief for families who, according to Gallup, in 2024 borrowed about 74 billion dollars just to pay medical bills.
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