Lexington, November 19, 2025
Lexington, Kentucky has launched a groundbreaking program to cancel over $12.6 million in medical debt for approximately 6,484 residents. Partnering with Undue Medical Debt, the initiative aims to relieve financial burdens for those uninsured or underinsured. Eligible individuals will receive notifications confirming their debt cancellation, while the city plans to eliminate up to $90 million in medical debt over the next three years. This marks Lexington as a leader in addressing medical debt in Kentucky, helping residents regain access to necessary healthcare.
Lexington, Kentucky, Announces $12.6 Million Medical Debt Forgiveness for Residents
Lexington, Kentucky – In a significant move to alleviate financial burdens, the city of Lexington has partnered with Undue Medical Debt, a national nonprofit organization, to cancel over $12.6 million in medical debt for approximately 6,484 residents. This initiative aims to provide relief to individuals struggling with unpaid medical expenses.
Details of the Debt Forgiveness Program
The program, announced on November 18, 2025, is the result of a $1 million investment by the Lexington-Fayette Urban County Government. The funds were allocated to Undue Medical Debt, which specializes in purchasing and abolishing medical debt for low-income individuals. Through this partnership, the nonprofit has successfully acquired and canceled medical debts totaling $12,641,416.24 for 6,484 residents by negotiating with local hospitals.
Vice Mayor Dan Wu emphasized the program’s impact, stating that it aims to relieve the financial strain that often prevents residents from seeking necessary medical care. This initiative is designed to assist those who are uninsured, underinsured, or facing high deductibles and out-of-pocket costs.
Eligibility Criteria
To qualify for the debt forgiveness, residents must meet specific criteria:
- Be current residents of Lexington-Fayette County.
- Have an income up to 400% of the federal poverty guidelines (approximately $100,000 for a family of three) or medical debt equal to 5% or more of their annual income.
Eligible individuals will receive notifications by mail from Undue Medical Debt, confirming the cancellation of their debts. It is important for recipients to retain these letters, as they serve as proof of debt cancellation for creditors.
Background and Future Plans
In October 2024, the Lexington-Fayette Urban County Council unanimously approved the allocation of $1 million to fund this medical debt relief initiative. The partnership with Undue Medical Debt is projected to eliminate up to $90 million in medical debt over the next three years. This program positions Lexington as the first city in Kentucky to implement such a large-scale medical debt forgiveness effort, joining a growing number of communities nationwide taking local action to ease financial burdens for residents.
Frequently Asked Questions (FAQ)
What is the Lexington-Fayette County medical debt forgiveness program?
The program is a partnership between the city of Lexington and Undue Medical Debt, a national nonprofit organization, aimed at canceling over $12.6 million in medical debt for approximately 6,484 residents. This initiative seeks to provide financial relief to individuals struggling with unpaid medical expenses.
How were the residents selected for debt cancellation?
Residents eligible for debt cancellation must be current residents of Lexington-Fayette County and have an income up to 400% of the federal poverty guidelines or medical debt equal to 5% or more of their annual income. Eligible individuals will receive notifications by mail from Undue Medical Debt confirming the cancellation of their debts.
Do recipients need to apply for this debt relief?
No, residents do not need to apply. Undue Medical Debt will automatically send letters to qualifying individuals, notifying them of the debt cancellation. It is important for recipients to retain these letters, as they serve as proof of debt cancellation for creditors.
What is the long-term goal of this program?
The program is projected to eliminate up to $90 million in medical debt over the next three years, providing substantial financial relief to residents and improving access to necessary medical care.
Key Features of the Medical Debt Forgiveness Program
| Feature | Description |
|---|---|
| Program Name | Lexington-Fayette County Medical Debt Forgiveness Program |
| Partnership | City of Lexington and Undue Medical Debt |
| Total Debt Canceled | $12,641,416.24 |
| Number of Residents Affected | 6,484 |
| Eligibility Criteria | Residents with income up to 400% of federal poverty guidelines or medical debt equal to 5% or more of annual income |
| Notification Method | Mail from Undue Medical Debt |
| Projected Total Debt Relief | Up to $90 million over the next three years |
| Statewide Impact | First large-scale medical debt forgiveness program in Kentucky |
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