Lexington announces third wave of medical debt relief for thousands of residents

LEXINGTON, Ky. (ABC 36 NEWS NOW) – Lexington has announced a third wave of medical debt relief, eliminating more than $4.8 million in outstanding debt for 2,185 residents.

Undue Medical Debt, a national nonprofit working in partnership with the Lexington-Fayette Urban County Government, announced the most recent round of abolishment, which totaled $4,850,146.13 in relief.

Residents who receive mailed notifications are encouraged to keep their letters as proof that their debts have been eliminated.

Since the Urban County Council unanimously approved $1 million in October 2024 to fund the initiative, a total of $23,161,094.05 in medical debt has been eliminated for 11,825 Lexington residents.

Relief is automatic and based on the following qualifications:

• Current Lexington-Fayette County residency, and
• Income up to 400% of the Federal Poverty Guidelines — just over $100,000 for a family of three — or medical debt equal to 5% or more of annual income.

Medical debt relief is source-based, meaning Undue Medical Debt can only eliminate qualifying debts it is able to acquire from partner providers, such as hospitals or debt collectors. Individuals cannot request relief directly.

For more information, visit lexingtonky.gov/medicaldebtrelief.