Last year, the council earmarked $1 million as part of an agreement with Undue Medical Debt, a national group that helps purchase and abolish debt for low-income residents.
And now, Vice Mayor Dan Wu says some Lexingtonians will be getting some welcome news in the mail.
"You may have received a letter in the mail from Undue Medical Debt, saying your unpaid medical debt has been acquired and canceled. That letter is indeed real, as is the relief of your debt," he said.
The full investment is expected to ultimately erase upwards of $90 million in medical debt, with the nonprofit acquiring the most burdensome debts in bulk for a fraction of their face value, allowing donated or city-allotted dollars to go further than they would on a dollar-for-dollar basis.
"While we may not be able to impact our healthcare and insurance systems on a national scale, we in city government can help at the local level," Wu added. "I am passionate about putting money back into the hands of Lexington families and relieving the burdens of medical debt."
As for who's eligible, there are several requirements.
Recipients must be current residents of Lexington-Fayette County, and have an income of up to 400% of the federal poverty guidelines — that's just over $100,000 for a family of three — or medical debt equal to 5% or more of their annual income.
Residents whose debt has been abolished will be notified directly by mail from Undue Medical Debt starting this week. It is not, however, a relief program that can be requested.