Orange County becomes first in State to clear medical debt: Here’s what you need to know

ORANGE COUNTY, Fla. — Orange County is officially the first county in the state of Florida that will use leftover covid cash to clear medical debt.

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On Tuesday, commissioners approved a contract with the national non-profit, Undue Medical Debt, to oversee the debt relief program.

An estimated 150,000 Orange County residents who have debt with either Orlando Health or Advent Health will have their debt cleared.

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To qualify, residents must be at or below 400 percent of the federal poverty line, or must be burdened by medical debt, meaning about 5 percent of their annual income goes to paying outstanding medical bills.

Undue Medical Debt’s CEO said the non-profit will clear debt held by residents that is 7 years old or less.

“It may not be all the debt on their plate, but it lowers the mountain for them, if you will. A lot of these people are faced with a lot of debts,” said the non-profit’s CEO Allison Sesso.

Commissioners are using $4.5 million worth of American Rescue Plan Act funds to clear the debt.

While commissioners at first weighed using the funds to address homelessness, they voted 5-2 to approve the contract with Undue Medical Debt on Tuesday.

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Sesso told commissioners that investment will clear approximately $425 million worth of debt held by 150 thousand residents.

“Here we’re getting more bang for our buck with this investment in our community,” said Uribe who voted yes on the contract.

According to the non-profit, eligible residents do not need to take any action.

If your debt has been cleared, you will receive a letter in the mail explaining exactly what bill has been cancelled and for how much.

The non-profit did not provide an exact timeline for when letters will be mailed but said the earliest those letters will likely go out is the next six months.

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According to federal guidelines for American Rescue Plan Act funds, all of the money has to be used by the end of 2026.

In addition to medical debt relief, program participants will receive information on how to access hospital charity care, no-cost or low-cost medical care, and financial assistance.

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