Orange County Eliminates $199 Million in Additional Medical Debt

Orange County, FL – Orange County has eliminated $199 million in medical debt for more than 112,000 county residents. The relief is part of the fourth wave of Orange County’s Medical Debt Relief Initiative, the largest health care-related financial relief effort by a government entity in Florida’s history.

To date, Orange County has relieved $758.2 million in medical debt, impacting approximately 429,276 county residents.

"This initiative is changing lives and helping residents focus on their health and build a brighter future for their families," said Orange County Mayor Jerry L. Demings. "It demonstrates what we can accomplish when government, nonprofits, and the private sector work together to strengthen our communities."

In August 2024, the Orange County Board of County Commissioners approved a partnership with the national nonprofit Undue Medical Debt. Using funding from the American Rescue Plan Act (ARPA), the partnership enables the nonprofit to purchase qualifying medical debt in bulk from hospitals, other healthcare providers, and collection agencies at a fraction of its face value, often for a penny or less on the dollar. On average, one dollar donated can erase $100 of medical debt.

Orange County's Medical Debt Relief Initiative does not accept applications. Instead, eligible debt is identified through partnerships with hospitals, healthcare providers, and debt collectors, then purchased directly by Undue Medical Debt. Once acquired, the debt is paid in full, with no tax consequences for the recipient. Relief recipients are notified with a letter of confirmation from Undue Medical Debt. Recipients of medical debt relief for this latest round will receive an Undue Medical Debt-branded envelope in the mail in the coming days.

For Racquel, a single mother and middle school teacher, having $300 in medical debt eliminated has eased financial stress.

"Having this medical debt paid off truly means the world to me. As a single parent living on a teacher's salary, things can be tight financially. I didn't have the extra money set aside for this unexpected expense, and it had been weighing heavily on me. This debt was especially stressful because I've spent the last three years working hard to rebuild my credit in hopes of one day buying a home."

The criteria for relief are income-based. Orange County residents who qualify live in a household with income at or below 400% of the Federal Poverty Guidelines (around $100,000/year for a family of three) or have medical debt that is 5% or more of their total household income.

“Undue is proud to partner with Orange County on this incredibly impactful initiative to relieve the burden of medical debt from hundreds of thousands of families,” says Allison Sesso, president and CEO of Undue Medical Debt. “As healthcare costs continue to stretch budgets and force patients to make impossible decisions between putting food on the table or continuing care for a chronic condition or taking their child to the ER, we’re proud to stand with government partners that believe no one should face financial ruin simply because they got sick and we hope debt relief will allow families to re-engage with the healthcare system.”

To learn more about Orange County’s partnership with Undue Medical Debt, and for a list of frequently asked questions, visit the county’s Iniciativa de Reducción de Deudas Médicas de la División de Protección del Medio Ambiente (EPD).