LA County Board of Supervisors is exploring ways to buy the medical debt of thousands of county residents.
Some 43 million Americans have about $88 billion worth of medical debts on their credit reports, according to the the Consumer Financial Protection Bureau. The LA County Board of Supervisors voted on Oct. 3, 2023, to explore buying up the medical debt given to collection agencies for LA County residents.A report back on how to do this is expected in early 2024.
Hahn said the motion is a way to address medical debt experienced by up to a million county residents. The process would cost the county only a fraction of the amount owed to buy the debt, then retire it, the county reported.When people accumulate debt from unpaid medical bills, eventually hospitals and medical establishments sell the debt to for-profit collection agencies.
Abraham, who also testified before the board, said the members of the medical association “stand in solidarity” with the supervisors in support of the plan. “Medical debt prevents people from seeking medical care and prescriptions and contributes to food and housing insecurity. These health and financial harms can be avoided and corrected with the right policies,” said the letter signed by Western Center on Law and Poverty’s executive director, Crystal Crawford, and senior attorney Helen Tran.
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