LACMA’s Immediate Past President Dr. Jerry Abraham Joins LA DPH’s Dr. Barbara Ferrer to Announce Groundbreaking Medical Debt Relief Program
Dr. Jerry Abraham, Immediate Past President of the Los Angeles County Medical Association (LACMA), joined Dr. Barbara Ferrer, Director of the Los Angeles County Department of Public Health (LA DPH) on Monday, to announce a historic Medical Debt Relief Program.
The groundbreaking LA County Medical Debt Relief Program is set to bring relief to an estimated 150,000 residents across the County by wiping out their medical debt. Thousands more will be notified in the coming months as the initiative aims to address the financial burden of medical debt that disproportionately impacts low-income and underserved communities.
This first-of-its-kind program, supported by the Los Angeles County Medical Association (LACMA), reflects a shared commitment to health equity and patient financial well-being. Physicians and healthcare providers should be aware of how the program works, its impact on patients, and how they can guide patients seeking support.
Major Funding and Bold Goals
With an initial $5 million investment from the LA County Board of Supervisors, the program will erase $500 million in medical debt. The long-term goal is to eliminate $2 billion in medical debt for eligible residents earning up to 400% of the federal poverty level. Unlike traditional programs, residents do not need to apply; they will receive letters notifying them when their debt is canceled.
Impact on Patients and Providers
The impact of this initiative will be significant for providers and healthcare systems alike. When medical debt is eliminated, patients are less likely to delay care, avoid essential follow-ups, or make trade-offs between healthcare and basic needs like housing and food. By reducing the financial strain on patients, providers may see improvements in care adherence and patient outcomes.
Additionally, medical debt is known to exacerbate stress, anxiety, and other social determinants of health. By addressing this burden, the Medical Debt Relief Program may help alleviate the mental and emotional strain on vulnerable populations, including children, families, and communities of color.
“Medical debt should not be the reason people avoid seeking care,” Dr. Jerry Abraham, Immediate Past President of LACMA and Director of Integrated Services and Public Health at Kedren Health said at the press event Monday. “No one should have to consider driving to another country for affordable treatment.”
LACMA and L.A. Care Health Plan have also made contributions, eliminating a total of $4 million in medical debt for county residents.
Addressing a Growing Crisis
Medical debt has surged to $2.9 billion in LA County, affecting 785,000 adults—or 1 in 10 residents. The burden often forces families to delay care or forgo essentials like food and housing. This program, in partnership with Undue Medical Debt, works by purchasing unpaid bills from hospitals like MLK Community Hospital and Adventist Health White Memorial for pennies on the dollar, erasing the debt.
A Collaborative Solution
“This initiative ensures those receiving critical care aren’t financially harmed,” said Dr. Barbara Ferrer. Supervisor Janice Hahn called it “County government at its best,” noting the thousands of families it will help. The LA County Department of Public Health will evaluate the program’s success to determine future expansion.
Key Details for Physicians
Patient Notification: Residents do not need to apply. Eligible residents will receive a letter from LA County Public Health and Undue Medical Debt notifying them of their canceled debt. Notifications will begin in January 2025.
Eligibility: The program targets residents earning up to 400% of the federal poverty level (FPL) with past-due medical debt.
Participating Hospitals: Initial participants include MLK Community Hospital and Adventist Health White Memorial Hospital. More hospitals may join the program in the future.
Debt Forgiveness Scope: The first phase will eliminate $500 million in medical debt for 150,000 residents, with a broader goal of eliminating $2 billion in total medical debt for nearly 200,000 residents.
No Patient Action Required: Physicians should reassure patients that they do not need to apply for this relief. Eligible patients will automatically be contacted.
What You Can Do as a Physician
Inform Patients: Be prepared to answer patient questions about the Medical Debt Relief Program. Patients may be unfamiliar with the process, so clear communication is essential.
Connect Patients to Resources: Direct patients with unresolved medical bills to LA County Public Health’s medical debt website, where they can learn about discounted hospital services, legal assistance, and consumer counseling.
Address Social Determinants of Health (SDOH): As medical debt is a known social determinant of health, providers may see an improvement in care adherence, mental health, and overall patient well-being.
Looking Ahead
This pilot program could serve as a national model for addressing medical debt as a public health issue. It represents a paradigm shift in how government, healthcare providers, and advocacy organizations work together to reduce health disparities.
By supporting the financial health of LA County’s most vulnerable residents, the initiative could have a lasting impact on health outcomes and economic stability.
As the program progresses, LACMA will continue to provide updates and resources for physicians to stay informed. For more information, visit publichealth.lacounty.gov/hccp/medicalDebt.
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