Medical debt is cheap to buy because almost nobody expects it to be paid. That’s why hospitals and collection agencies sell it off in bundles well under face value. Undue Medical Debt buys the same bundles at the same prices and then writes them off instead, which is how $2.5 million of state money turns into $250 million of cancelled debt — $100 gone for every dollar Kentucky spends. The first letters went out this week to clear debt owed by about 130,000 people. "Medical debt isn't a choice — it's what people are faced with after a serious accident, cancer diagnosis and more. Relieving this debt is the right thing to do to help Kentuckians who are overwhelmed by these extreme costs, which can cripple families for years, if not a lifetime,” said Gov. Andy Beshear (pictured), who signed an executive order Monday to wipe out the medical debt. To qualify, Kentuckians must owe at least 5% of their annual income in medical bills or earn at or below 400% of the poverty level. That equals around $100,000 for a family of three. Relieving medical debt provides a fresh start for hardworking families who have lost their financial stability through no fault of their own.
