Orange County will spend $4.5 million to wipe medical debt for thousands in a move that county leaders believe to be a first in Florida. County commissioners voted 5-2 Tuesday to partner with a national nonprofit that intends to buy the debt for pennies on the dollar and then forgive those who owe it.
The aid will go to residents whose medical debt constitutes five percent or more of their annual household income or who are living in households earning a salary four times below the federal poverty line. In the U.S.
that line is $31,200 for a family of four. An estimated 154,000 people in Orange County meet those criteria, officials said. “Look at more low-income, for instance, or marginalized people that might not even know that they have this insane amount of debt because they don’t have cell phones,” said Matthew Grocholske, who urged commissioners Tuesday to approve the initiative.
“At 20 years old, I’m $39,000 in debt from student loan payments, renting history and medical debt as well.” For nearly a year, the county has considered the debt reduction plan, which will be paid for by leftover pandemic relief funds. In July, commissioners deferred the final vote on the plan to Tuesday’s meeting while seeking more information about the nonprofit involved, Undue Medical Debt, and who exactly would benefit from the partnership.
“I do want to be real about what this does and doesn’t do,” said Undue’s Chief Executive Officer, Allison Sesso. “It is not the .